Jim Cramer Says Seagate's 'Multi-Year Build Out' Signals Bullish Tide For Nvidia, Google, And Amazon

CNBC's Jim Cramer has identified a critical signal in the technology sector, suggesting that Seagate Technology Holdings PLC‘s (NASDAQ:STX) recent performance points to a sustained infrastructure boom that will directly benefit major players like Nvidia Corp. (NASDAQ:NVDA), Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, and Amazon.com Inc. (NASDAQ:AMZN).

A Leading Indicator For Big Tech

In a post on X early Wednesday, Cramer highlighted his deepening conviction in Seagate as a bellwether for the broader tech ecosystem.

“The more I dig down on Seagate the more it seems that there could be a multi-year build out leading to terrific things for Google, Nvidia, Broadcom, Microsoft and Amazon,” Cramer wrote.

Cramer's analysis suggests that the demand for mass storage solutions—essential for data centers and AI model training—is not a short-term spike but a long-term structural shift.

By positioning Seagate as the foundational “build out” layer, Cramer indicates that the cloud and AI services provided by the Magnificent 7 companies have a long runway of growth ahead.

Earnings Beat Confirms Data Center Strength

Cramer's comments followed Seagate's strong second-quarter earnings report released Tuesday afternoon.

The company reported adjusted earnings per share of $3.11, handily beating the analyst consensus of $2.81 by over 10%. Revenue climbed to $2.83 billion, surpassing expectations of $2.73 billion.

Seagate CEO Dave Mosley attributed the record-setting margins to the “durability of data center demand” and the ramp-up of their new HAMR-based products.

Despite the beat, shares slid roughly 2% in extended trading, a common reaction when high expectations are priced in, though the fundamental outlook remains robust.

Supply Chain Pressures Mount

The “build out” Cramer describes is occurring against a backdrop of tightening global supply chains.

President Donald Trump's recent move to raise tariffs on South Korea to 25% has exacerbated a “memory-chip crunch,” impacting prices for components vital to AI infrastructure.

While this adds geopolitical friction, it also underscores the scarcity and value of the hardware required to power the next generation of computing.

STX Jumps Nearly 30% YTD

Shares of STX have jumped 32.16% over the last month and 29.29% in 2026 so far. It was up 147.08% over the last six months and 270.76% over the year. The stock was trading 10.70% higher in pre-market on Wednesday.

Benzinga’s Edge Stock Rankings indicate that STX maintains a strong price trend over the short, medium, and long terms, with a poor value ranking.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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