Seagate Stock Soars 25% YTD, What's Driving The Rally?

Group 1: Company Performance - Seagate reported Q2 earnings with net sales of $2.3 billion, a 50% year-over-year increase, driven by a rebound in storage demand [1] - The company's gross margin improved from 23.3% in Q2 2024 to 34.9% in Q2 2025, while operating margin expanded from 8.0% to 21.0% [1] - Earnings per share (EPS) surged to$ 1.55 from $(0.09) over the same period [1] Group 2: Stock Performance - Seagate stock has risen 30% since early January 2024, outperforming the S&P 500's 28% increase during the same period [2] - The stock has experienced significant volatility over the past four years, with returns of 88% in 2021, -51% in 2022, 69% in 2023, and 4% in 2024 [5] Group 3: Future Outlook - Seagate is focusing on Heat Assisted Magnetic Recording (HAMR) technology, shipping 30 TB hard disks, which positions the company for growth amid increasing demand for high-capacity drives [3] - Revenue is expected to grow 40% year-over-year to$ 9.2 billion in 2025, with a valuation estimate of $115 per share, reflecting a 6% upside from current levels [4] - Analysts have an average price estimate of$ 123 for Seagate, indicating nearly 13% upside potential [4]