Jim Cramer’s Positive On Seagate Technology (STX)

We recently published Jim Cramer’s 12 Fresh Stocks & Quantum Computing Trading Strategy. Seagate Technology Holdings plc (NASDAQ:STX) is one of the stocks Jim Cramer recently discussed.

Seagate Technology Holdings plc (NASDAQ:STX) makes and sells hard disks and other storage devices used in computers. Over the six months, its shares have gained 184% and made Cramer wonder whether the firm’s market and business model mean that its multiple is too high. Cramer believes that Seagate Technology Holdings plc (NASDAQ:STX)’s share price performance is a “reflection of the AI data center bull market.” In this appearance, he commented on the firm after Intel’s third-quarter earnings report. During the earnings, CFO David Zinsner pointed to a CPU market supply constraint. For Cramer, this means that firms like Seagate Technology Holdings plc (NASDAQ:STX) can benefit as PC makers scramble for more storage devices:

“David Zinsner, who’s a fantastic CFO, remember I mean Micron, he’s just a genius. He says listen, supply constraints, supply constraints, supply constraints. Others. . .Seagate. . .will go up again. . . .They all play a role and then I think that even though NVIDIA was mentioned by Lip-Bu, was having one big product with them, NVIDIA gets taken up too. Tour-de-force conference call, people should all listen to. . .

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.

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