Seagate Technology (STX) Gaining on Unprecedented AI-Driven Demand

Seagate Technology Holdings plc (NASDAQ:STX) has gained more than 550% over the past 12 months, driven by unprecedented AI-driven demand. Analysts expect the company to grow its EPS by roughly 70% over the next 5 years. The stock ranks among the Top 10 Unstoppable Growth Stocks to Invest In.

​Recently, on June 2, Citi raised the price target on Seagate Technology Holdings plc (NASDAQ:STX) from $740 to $1,150 and maintained a Buy rating on the shares. The firm noted that they have raised the earnings estimates for the hard disk drive spaces due to resilient AI-driven demand and disciplined industry supply management. The firm believes that these factors are going to help the company maintain its pricing power.

​That said, Seagate Technologies topped Wall Street expectations during its fiscal Q3 2026 earnings release. The company posted $3.11 billion in revenue and $4.10 in adjusted EPS, both metrics topped the expectations of $2.96 billion and $3.53, respectively. Management raised its long-term annual revenue growth target to at least 20% and projected Q4 2026 EPS of approximately $5.00, well above previous analyst forecasts.

​Seagate Technology Holdings plc (NASDAQ:STX) is a global leader in data storage technology, developing, manufacturing, and distributing hard disk drives, solid-state drives, and mass-capacity storage systems for enterprise, cloud, and consumer markets.

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: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds. 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1