Seagate Technology Holdings plc (STX) has surged 200.8% year-to-date, significantly outperforming the Zacks Computer-Integrated Systems industry’s growth of 103.4% and the S&P 500’s gain of 11.8%. This growth is attributed to the increasing demand for AI data storage solutions. In fiscal 2026, Seagate achieved revenues of $12.2 billion, marking a 34% increase, and generated a record $3.1 billion in free cash flow.
The company is experiencing rapid advancements in its HAMR (Heat-Assisted Magnetic Recording) technology, which positions it well to meet the rising demand for high-capacity hard drives. Currently, 40% of nearline exabytes are stored on HAMR drives. Seagate projects fiscal first-quarter revenues of approximately $4.1 billion, reflecting a significant 56% year-over-year increase. Despite facing potential execution risks from transitioning to HAMR technology, the outlook remains optimistic due to sustained demand in the AI-driven storage market.
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