Seagate

STX

Market cap $88.9B

Seagate's earnings growth has accelerated amid strong demand for storage solutions in AI data centers. The company should benefit from further price improvements in hard disk drives, which will lead to a significant earnings jump.

Seagate Technology Holdings plc (STX) Presents at Bernstein Insights: What's next in tech? - 4th Annual Tech, Media, Telecom Forum Transcript

STX benefits from AI-driven HDD demand, margin expansion and rising estimates, outpacing NTAP on financial strength and momentum.

Seagate has transitioned from a cyclical PC stock to a structurally scarce asset, underpinned by AI-driven data center storage demand. STX's nearline capacity is fully committed through 2026, with multi-year contracts extending into 2027–2028, providing strong revenue visibility and pricing power. Technological advances like HAMR/Mozaic are driving higher-capacity drives, margin expansion, and a permanent shift in product mix and earnings growth.

Seagate has been re-rated in the last 6 months as an AI data center infrastructure bet in the HDD memory space. Perception changed, but revenue growth is still far from Micron and SanDisk, as HDD is seeing fewer price hikes than SSDs or DRAM/HBM chips. That said, STX delivered its highest free cash flow in eight years and guided above consensus, with 87% of exabyte shipments now data center-driven.

EDU, ALL, and STX it to the Zacks Rank #1 (Strong Buy) growth stocks list on February 24, 2026.

EDU, AROC and STX made it to the Zacks Rank #1 (Strong Buy) growth stocks list on February 20th, 2026.

SINGAPORE--(BUSINESS WIRE)--Seagate Technology Holdings plc (NASDAQ: STX) (“Seagate” or “Company”) and Seagate HDD Cayman, a subsidiary of Seagate (“Seagate HDD”), today announced that on February 19, 2026, the Company closed the previously announced privately negotiated exchanges (the “exchanges”) of $600 million principal amount of Seagate HDD's 3.50% Exchangeable Senior Notes due 2028 (the “notes”) for aggregate consideration consisting of approximately $599.2 million in cash and approximate.

The S&P 500's annualized total return over the last five years has been roughly 13.5%, but the average stock currently in the index has seen an annualized total return about 2.6 percentage points less at just 10.9%.

STX ramps HAMR drives as AI-fueled data demand surges, shipping 1.5M+ units and locking in cloud deals through 2027.