Melius Research Starts Coverage of Seagate Technology Holdings plc (STX)

Seagate Technology Holdings plc (NASDAQ:STX) is one of the 15 Best Stocks to Buy for the Second Half of 2026.

On June 29, Melius Research started coverage of Seagate Technology Holdings plc (NASDAQ:STX) with a Buy rating and a $1,600 price target. The firm noted the recent pullback created an attractive entry point. Describing himself as an “AI infrastructure bull,” analyst Ben Reitzes said hard disk drives retain long-term strategic value as AI, particularly video and physical AI, which speeds up storage demand.

Separately, Seagate Technology Holdings plc (NASDAQ:STX) CEO Dave Mosley said the company is entering “a new era of structural growth” as AI applications increase data creation and help sustain storage demand. Mosley remarked that Seagate’s areal density strategy positions the firm to deliver capital-efficient storage and drive “profitable growth and long-term value creation.”

Melius Research Starts Coverage of Seagate Technology Holdings plc (STX)

The company also said its fiscal fourth quarter guidance assumes only a minimal expected impact from global tariff policies and the Middle East conflict. It includes the estimated dilution from its 2028 Exchangeable Senior Notes.

Seagate Technology Holdings plc (NASDAQ:STX) operates as a holding company. It is engaged in the development, production, and distribution of data storage products and electronic data storage solutions.

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 the cheapest AI stock.

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