Seagate Technology (STX) Stock Is Up, What You Need To Know

What Happened?

Shares of data storage manufacturer Seagate (NASDAQ:STX) jumped 2.9% in the afternoon session after analysts at Morgan Stanley and Benchmark raised their price targets on the stock, citing strong demand. 

The optimism was linked to high demand for the company's Hard Disk Drives (HDDs), fueled by growth in AI storage and cloud computing. Seagate's technological lead in Heat-Assisted Magnetic Recording (HAMR) was also highlighted. The company's performance metrics supported the positive view, as it reported a 21% year-over-year revenue growth at the start of its fiscal year 2026 and achieved record gross margins. Its operating efficiency also showed improvement over the previous five years. A broader market lift from unexpectedly cool inflation data may have also contributed to the positive sentiment.

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What Is The Market Telling Us

Seagate Technology’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 5.6% on the news that the semiconductor sector as a bullish revenue forecast from memory-chip maker Micron Technology helped reignite investor enthusiasm for the AI-driven market. Shares of Micron soared over 11% after the company issued a sales outlook that surpassed analysts' estimates, pointing to robust demand for its chips, which are crucial for AI hardware. As a bellwether for the industry, Micron's optimistic outlook is seen as a positive signal for the entire semiconductor ecosystem. Management cited improving demand conditions and tighter supply, suggesting strong pricing power. This news helped reverse recent slides in AI-related stocks and lifted the broader semiconductor sector, reinforcing the narrative of sustained growth fueled by the expansion of artificial intelligence.

Seagate Technology is up 251% since the beginning of the year, and at $303.04 per share, it is trading close to its 52-week high of $307.85 from December 2025. Investors who bought $1,000 worth of Seagate Technology’s shares 5 years ago would now be looking at an investment worth $4,659.

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