Jim Cramer on Seagate: “That’s a Great Thing to Be in This Environment”

Seagate Technology Holdings plc (NASDAQ:STX) is one of the stocks in focus in the game plan Jim Cramer shared. Cramer showed bullish sentiment toward the stock during the episode and said:

“You want a stock that’s moved up in anticipation of a blowout that could give you a blowout times two? Well, that’s how I feel about the stock of Seagate. Yes, the disk drive company, which is supply-constrained. That’s a great thing to be in this environment.”

HDD, SeaGate

patrick-lindenberg-1iVKwElWrPA-unsplash

Seagate Technology Holdings plc (NASDAQ:STX) develops and supplies data storage solutions, including hard drives, solid-state drives, and external storage products. During the lightning round on September 17, a caller asked for Cramer’s advice on the stock, and he responded:

“Okay, I’m torn about Seagate. I’ve known the company forever… From when it started. Here’s my problem: it sells at 20 times earnings. It’s the number one… I think like top three performing in the S&P 500. But at 20 times earnings, that’s a lot for a storage company. So I would be careful not to buy it at this high point. It’s just had such a big run.”

While we acknowledge the risk and potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.