13 Cheap AI Stocks to Buy According to Analysts

9. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 52

Average Upside Potential: ~14.9%

Forward P/E as of May 12: ~10.9x

Seagate Technology Holdings plc (NASDAQ:STX) plays a critical role in the broader AI ecosystem as it provides data storage infrastructure, which remains a key element when it comes to training, managing, and deploying AI systems. Analyst Wamsi Mohan of Bank of America Securities reiterated a “Buy” rating on the company’s stock, raising the price objective to $120.00. The rating is backed by a combination of factors such as Seagate Technology Holdings plc (NASDAQ:STX)’s healthy financial performance and strong future prospects. Its revenue and EPS surpassed the expectations despite supply chain challenges. While revenue sat at $2.16 billion, its GAAP diluted EPS came in at $1.57.

The company, while quoting Goldman Sachs Research forecasts, highlighted that global power demand from data centres can increase by 165% by 2030 as compared with 2023. Seagate Technology Holdings plc (NASDAQ:STX) opines that AI is expected to lead the wave of demand for data storage. Furthermore, the increasing demand for mass capacity storage remains in line with the cloud CapEx investment cycle as well as the ongoing build-out of data center infrastructure to help AI transformations. The company’s emphasis on developing advanced storage technologies, such as HAMR, positions it well to capitalize on the opportunities available. Establishing as a critical provider of storage solutions for AI and cloud applications, Seagate Technology Holdings plc (NASDAQ:STX) can witness a robust and growing revenue stream moving forward.