"This Is Unbelievable," Says Jim Cramer About Seagate (STX)

We recently published 14 Stocks Jim Cramer Discussed Including His 2 Top Quantum Computing Stocks. Seagate Technology Holdings plc (NASDAQ:STX) is one of the stocks Jim Cramer recently discussed.

Seagate Technology Holdings plc (NASDAQ:STX) has been on Cramer’s radar recently as the shares have gained a cool 36% over the past month. The share price gains have left him double-minded, as while he’s appreciative of the performance, the firm’s business model of selling computer storage devices has left Cramer wondering whether a multiple of 20 might be too high. Cramer explained the reason behind his belief that storage companies should trade at a lower multiple in July as he outlined that they operate in a “cutthroat industry.” In this appearance, he discussed Bank of America’s Wamsi Mohan and his comments about the strong performance of traditional technology stocks in today’s AI-driven markets:

“You know Wamsi was on and he talked about the idea that old tech renaissance, you’ve got, you have Seagate. David, SanDisk, David I mean this is unbelievable. These are companies that, you have Western Digital, you said we’ll be safe in hardware. No you did not. No one thought we’d be safe in hardware. Because hardware always had a low multiple, by the way.”

In his Mad Money appearance in July, Cramer discussed Seagate Technology Holdings plc (NASDAQ:STX) in detail:

“In fourth place… this is an amazing one, Seagate Technology of all things, up 67% in the first half after more than doubling from its lows in April. Seagate makes hard drives and flash-based solid state drives, basically storage hardware, the textbook commodity tech product. But right now, the hard drive business is booming, and the company announced a $5 billion buyback a little over a month ago while projecting mid-teens revenue growth through 2028. That’s not bad.

“This one’s a reflection of the AI data center bull market. As long as people are building these big warehouses full of servers, they need everything that goes into a server, including storage, even if the lineage is ancient. We had a big scare earlier this year with all that DeepSeek nonsense. But once companies began reporting in April, it became clear that DeepSeek had no impact on anything, and stocks like Seagate have been making up for lost time ever since. Can it keep running? Look, if data center demand stays strong, it wouldn’t surprise me, even as this one’s just made a new all-time high today.”

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.

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