Core Insights - Nvidia has seen a significant increase in stock value over the past three years, with a rise of 1,220%, but its growth in 2025 was less impressive compared to previous years [1] - Seagate Technology has experienced a remarkable stock increase of 225% in the past year, outpacing Nvidia's growth in 2025 [2] Company Performance - Seagate derives 80% of its revenue from data center storage products, which are in high demand from cloud computing companies and enterprises [4] - The company anticipates strong data center demand for the next few years, with production capacity for 2026 nearly sold out [5] - Seagate's long-term agreements with global data center customers provide visibility through 2027, indicating sustained favorable demand conditions [5] Market Dynamics - IDC estimates that global data generation could increase by over fivefold from 2020 to 2028, leading to a doubling of data center storage needs between 2024 and 2028 [5] - Seagate's addressable market in data center storage is projected to grow from $13 billion in 2024 to approximately $23 billion by the end of the forecast period [5] - A favorable pricing environment is emerging due to a memory shortage driven by AI demand, with HDD contract prices increasing by an estimated 4% in Q4 [6] Future Outlook - The trend of increasing demand for data storage products is expected to continue, potentially leading to further price hikes and improved revenue and earnings for Seagate [7][8]

Core Insights - The digital storage market is not perceived as overly dynamic, yet companies like Seagate Technology have seen significant stock price increases, with shares rising 16% over the past trading week [1] - The demand for artificial intelligence (AI) functionalities, particularly in inferencing, is driving the need for substantial storage resources, which aligns with Seagate's current offerings [2] - Analysts have raised their price targets for Seagate's stock, with Morgan Stanley's Erik Woodring increasing his fair-value assessment from $168 to $265 per share, maintaining an overweight recommendation [3][4] - In a rising market for the sector, Seagate is recognized as a reliable company that has consistently performed well, making it a key beneficiary of the current bull run [5]

Core Insights - The article discusses the resurgence of traditional tech companies like Seagate and Western Digital amidst the AI boom, highlighting their critical role in data storage for AI applications [1][6][11]. Group 1: Company Performance - Seagate Technology Holdings Plc has emerged as the best-performing stock in the S&P 500 Index this year, with a remarkable increase of 156% [5]. - Western Digital Corp ranks third in performance with a 137% gain, while Micron Technology Inc has seen a 93% rise, following a record 12-session winning streak [5]. - Despite their recent performance, Seagate, Western Digital, and Micron are generally considered among the cheapest stocks in the S&P 500 due to their cyclical nature [11]. Group 2: Market Trends and Valuations - The stock market is experiencing a shift towards older technology sectors, with significant investments in infrastructure to support AI, including semiconductors and data centers [3][6]. - Seagate's valuation is currently at 20 times estimated profits, which is considered attractive given the strong demand outlook for its products [13]. - Analysts have noted that these stocks have risen rapidly, with Seagate trading over 20% above the average price projection, indicating potential profit-taking opportunities for investors [16]. Group 3: Revenue Projections - Seagate's revenue is projected to rise by 16% in fiscal 2026, down from 39% in fiscal 2025, while Western Digital is also expected to see a 16% revenue increase after a 27% decline in the previous fiscal year [15]. - Micron is anticipated to have the strongest sales outlook, with revenue expected to climb by 48% this year and 33% next [15].