Analyst Explains Why Seagate (STX) Has a 'Lot More Upside'

We recently published Wall Street Analysts Like These 10 Stocks. Seagate Technology Holdings PLC (NASDAQ:STX) is one of the stocks analysts were recently talking about.

Mark Newman, Bernstein senior analyst, said in a recent program on CNBC that Seagate Technology Holdings PLC (NASDAQ:STX) is one of his favorite data storage stocks as demand for data storage technologies is increasing amid the AI revolution. Here is what Newman said:

“Seagate Technology Holdings PLC (NASDAQ:STX) is the leader in Heat Assisted Magnetic Recording (HAMR) technology. It is the next generation in hard disk drive technology. We think that is going to enable them to drive down costs much faster than competitors leading to an expansion in margins which is leading to a 28% CAGR in EPS over the next 5 years and so I think this if you consider almost 30% 5-year CAGR in earnings this stock is still very cheap where it is so we think there’s still a lot more upside for this stock.”

While we acknowledge the potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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.