Goldman Sachs Begins Coverage on Seagate Technology Holdings (STX) Stock with a Buy

Seagate Technology Holdings plc (NASDAQ:STX) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs initiated coverage on the company’s stock with a “Buy” rating and a price objective of $170.00. The firm highlighted Seagate Technology Holdings plc (NASDAQ:STX)’s technological leadership, mainly with respect to its HAMR-based drives, which can help it regain nearline HDD market share. Elsewhere, Mizuho upped the price target on Seagate Technology Holdings plc (NASDAQ:STX)’s stock to $155 from $130, noting that HAMR ramps are driving better ASPs and GMs, with demand looking robust into 2026E amidst increased capacity drives.

Furthermore, Mizuho also added that Seagate Technology Holdings plc (NASDAQ:STX) continues to benefit from robust HAMR leadership/ramp, and added that large language models, such as GPT-5, continue to fuel AI server demand. Seagate Technology Holdings plc (NASDAQ:STX) highlighted that technology innovation and AI continue to fuel exponential data growth and drive demand for the hard drive storage industry. The company remains well-placed to capture this opportunity with its Mozaic portfolio powered by market-leading HAMR technology.

Seagate Technology Holdings plc (NASDAQ:STX) happens to be an AI-focused business by developing purpose-built hard drives such as SkyHawk AI.

While we acknowledge the potential of STX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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