STX surged 445% on AI-driven hyperscaler demand; with capacity sold out through 2026 and record free cash flow of $3.1 billion, 24/7 Wall St. rates it a BUY targeting $916. WDC's forward P/E of 22 matches Seagate's but trails on revenue growth, while MU's forward P/E of 6 reflects sharply different memory economics. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Seagate Technology didn't make the cut.
Grab the names FREE today. Seagate Technology (NASDAQ:STX) has quietly become one of the AI trade's most explosive winners, with shares up 445.36% over the past year on surging hyperscaler demand for mass-capacity storage. Our 24/7 Wall St. price target for Seagate is $916.25, implying 11.67% upside from the current $820.52 price.
We rate the stock a buy with high conviction. Our confidence is anchored in four consecutive quarterly EPS beats, accelerating cloud demand tied to AI infrastructure, and a HAMR technology roadmap now qualified with every major U.S. hyperscaler. Seagate closed fiscal 2026 in July with a blowout Q4: revenue of $3.629 billion (up 48.5% year over year) and non-GAAP EPS of $5.71, beating consensus by 12.11%.
Full-year free cash flow hit a record $3.105 billion, up 279.58%. Shares have pulled back 9.87% over the past month after peaking near $1,144.18, but the YTD gain still stands at 198.7%. CEO Dave Mosley credited "robust cloud data center demand and disciplined execution" for the run.
Bulls point to a demand backdrop management has called extraordinary. Mosley told investors "our nearline capacity is fully allocated through calendar year 2026", with pricing negotiations already underway for 2027 and 2028. The Mozaic HAMR platform is qualified with all major U.S. cloud service provider customers, and Q1 FY27 guidance calls for revenue of $4.10 billion and EPS of $7.30.
Wall Street's average target is $1,115.87, with 22 buy ratings against one sell. Our bull-case scenario gets Seagate to $1,217.52, a 48.38% gain. The trailing P/E of 58 leaves no margin for error if hyperscaler capex cools.
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