Morgan Stanley Names Seagate (STX) Core 2026 Selection as Cloud Capex Spending Gains Momentum

Group 1 - Seagate Technology Holdings (NASDAQ:STX) is recognized as one of the best performing S&P 500 stocks in 2025, with analysts raising price targets significantly [1][2] - Morgan Stanley increased its price target on Seagate to $337 from $270, citing a focus on 'cloud capex winners' and product-cycle leaders, while advising caution on memory-heavy stocks due to rising memory costs [1] - Citi raised its price target on Seagate to $320 from $275, attributing this to a favorable supply-and-demand balance in the memory sector, with demand visibility extending through 2027 driven by AI-generated unstructured data [2] Group 2 - In Q3 2025, Seagate reported revenue of $2.63 billion, a 21.3% year-over-year increase, surpassing analyst estimates by 3%, with non-GAAP EPS of $2.61, which was 8.8% higher than consensus [3] - Seagate's annualized revenue growth over the last two years stands at 18.5%, indicating strong demand acceleration compared to its five-year historical trend [3] - For Q4, Seagate projects revenue at a midpoint of $2.7 billion and an adjusted EPS of approximately $2.75, both exceeding Wall Street forecasts [3] Group 3 - Seagate Technology provides data storage technology and infrastructure solutions across multiple regions, including Singapore, the US, and the Netherlands [4]