Is Seagate Technology Holdings plc (STX) the Undervalued Quantum Computing Stock to Buy Now?

We recently published a list of 10 Undervalued Quantum Computing Stocks to Buy Now. In this article, we are going to take a look at where Seagate Technology Holdings plc (NASDAQ:STX) stands against other undervalued quantum computing stocks to buy now.

Quantum computing is turning into an essential component of the upcoming technological revolution. It is resolving problems all around in sectors spanning security, finance, medicine, and AI. In comparison to regular computers, quantum systems use qubits that work in multiple states at once, which massively boosts processing power. This does show advancements in the field of science, and as such, it is encouraging new markets. PwC reports that quantum tech is making waves in research, operations, and infrastructure, with specific attention on optimization, system simulation, and modeling risks.

According to ResearchAndMarkets, while the quantum industry reached $1.9 billion in 2024, it is expected to hit $7.5 billion by 2030, with a CAGR of 28.7%. Forbes stated that this strong growth comes from institutional support, public-private teamwork, and hardware breakthroughs. Moreover, venture capital invested $1.5 billion into 50 quantum startups last year, almost twice the amount in 2023. The Forbes Technology Council adds that this demonstrates that investors are putting more trust in the quantum sector. Thus, it has the potential to reshape not just the IT sector but global markets too, from portfolio management to trading algorithms, by cutting computation time and risks.

In response to this technology, the stock market has been skeptical, as it is uncertain when quantum computing will go mainstream. However, recent advances in error reduction, logical qubit formation, and hybrid quantum-classical models have boosted optimism among investors. These hybrid approaches are already helping with logistics, artificial intelligence, and materials research. Forbes claims that this shift is a complete redefinition of tech investing, with quantum moving from an accessory to a necessity in the tech sector.

In contrast, in the financial sector, the industry is getting attention despite being relatively new and in development. IDTechEx predicts it can reach $10 billion worth of value in two decades, driven by the active advancements of quantum startups. With over 50 of these startups turning profitable in just four years, companies are now rapidly adopting the technology, with a rise in demand for quantum programs. Meanwhile, an IDC report in April showed PC shipments grew 4.9% in Q1 2025, unaffected by the rising tariffs. Furthermore, even governments all around the globe are investing in this sector, led by America, Germany, China, and Britain. The UN even declared 2025 the International Year of Quantum Science and Technology.

Looking ahead, the technological progress keeps investors hooked with new materials like niobium. When paired with surface encapsulation methods, it has stretched coherence times to 600 microseconds, making qubits perform better. In addition, better chip designs and error correction are helping quantum systems move from labs to real applications. These improvements should cut costs and boost reliability, bringing quantum’s theoretical potential into practical use.

Our Methodology

To curate our list of the 10 Undervalued Quantum Computing Stocks to Buy Now, we relied on the Finviz screener to find the biggest Quantum Computing companies. We narrowed down these companies by choosing ones that have their forward price-to-earnings multiple less than 15, as of the time of writing this article. Next, we ranked the shortlisted stocks based on the hedge fund sentiment surrounding each stock, as per Insider Monkey’s Q4 2024 database. The 10 Undervalued Quantum Computing Stocks to Buy Now are listed in ascending order based on the number of hedge fund holders having stakes in the respective stocks.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 52

Forward Price to Earnings (P/E) ratio: 9.94

Seagate Technology Holdings plc (NASDAQ:STX) leads the market in high-capacity data storage, offering HDDs, SSDs, and cloud systems through its Lyve platform. It serves businesses globally across the U.S., Singapore, and the Netherlands, providing storage tech that supports heavy computing for AI, cloud services, and new tech like quantum computing.

In Q2 FY2025 ended December 27, 2024, Seagate made $2.33 billion in revenue, up 50% from last year and 7% from last quarter. The company’s non-GAAP earnings hit $2.03 per share, beating expectations, while operating income jumped 22% to $538 million. Where gross margin reached 35.5%, free cash flow grew to $150 million from the previous quarter’s $27 million. Seagate Technology Holdings plc (NASDAQ:STX) shipped 151 exabytes in total, due to strong cloud customer demand.

Seagate Technology Holdings plc (NASDAQ:STX) also expanded its Mozaic platform using HAMR (Heat-Assisted Magnetic Recording) technology. With drives now sampling at 36TB capacity and more testing in progress, the company is ready to support next-gen systems needing massive data handling. This is crucial for simulation-heavy and data-centric environments supporting quantum computing.

Despite a production obstacle expected to affect Q3 FY2025 revenue by $200 million, the overall outlook is promising. Seagate Technology Holdings plc (NASDAQ:STX) projects $2.1 billion revenue (give or take $150 million) with earnings around $1.70 per share, though supply issues are expected to impact the quarter that ended in March. Seagate continues to play an essential role in data systems that drive quantum computing and AI tech forward, while remaining one of the cheap stocks to buy.

Overall, STX ranks 1st on our list of undervalued quantum computing stocks to buy now. While we acknowledge the potential of STX as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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