Seagate Stock Rises on Strong AI Demand and Earnings Beat

Published 2 hours agoSTX

Seagate Stock Rises on Strong AI Demand and Earnings Beat

Seagate Technology's stock has recently soared, fueled by the company's announcement of an upbeat revenue guidance driven by increasing demand for artificial intelligence applications. The tech company reported an impressive performance in its fiscal third quarter, ending March 28, 2025, with adjusted earnings per share of $1.90. This surpassed analyst expectations of $1.73, while revenue hit $2.16 billion, reflecting a 30.5% increase from the previous year.

Seagate's outlook for the fourth quarter also sparks optimism, with projected adjusted earnings per share ranging from $2.20 to $2.60 and anticipated revenue between $2.25 billion and $2.55 billion, which exceeds the current analyst forecasts. According to Investing.com, the robust performance prompted several analysts to upgrade their price targets for Seagate, including TD Cowen, which adjusted its target from $110 to $135, highlighting the impact of AI-induced storage demand.

The surge in AI applications has ramped up the need for efficient data storage solutions, and Seagate is well-placed to capitalize on this trend with its mass-capacity drives and advanced Heat-Assisted Magnetic Recording technology. The company has also formed strategic partnerships with leading cloud service and AI companies to create storage solutions tailored to AI workloads, further solidifying its position in the rapidly growing AI-driven data storage sector.

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Seagate Stock Rises on Strong AI Demand and Earnings Beat

Seagate Stock Rises on Strong AI Demand and Earnings Beat

Seagate Technology's stock has recently soared, fueled by the company's announcement of an upbeat revenue guidance driven by increasing demand for artificial intelligence applications. The tech company reported an impressive performance in its fiscal third quarter, ending March 28, 2025, with adjusted earnings per share of $1.90. This surpassed analyst expectations of $1.73, while revenue hit $2.16 billion, reflecting a 30.5% increase from the previous year. Seagate's outlook for the fourth quarter also sparks optimism, with projected adjusted earnings per share ranging from $2.20 to $2.60 and anticipated revenue between $2.25 billion and $2.55 billion, which exceeds the current analyst forecasts. According to Investing.com, the robust performance prompted several analysts to upgrade their price targets for Seagate, including TD Cowen, which adjusted its target from $110 to $135, highlighting the impact of AI-induced storage demand. The surge in AI applications has ramped up the need for efficient data storage solutions, and Seagate is well-placed to capitalize on this trend with its mass-capacity drives and advanced Heat-Assisted Magnetic Recording technology. The company has also formed strategic partnerships with leading cloud service and AI companies to create storage solutions tailored to AI workloads, further solidifying its position in the rapidly growing AI-driven data storage sector.