Seagate Shares Surge 81.8% YTD on Cloud and AI Demand Volume Ranks 295th in Market Activity

Seagate Technology (STX) rose 2.77% on August 18, with a trading volume of $320 million, up 43.28% from the previous day, ranking 295th in market activity. The stock has surged 81.8% year-to-date, outperforming the broader tech sector and S&P 500. Growth is driven by strong demand for high-capacity nearline storage, particularly in cloud and AI-driven data centers. Seagate’s HAMR technology, enabling 3TB-per-disk Mozaic drives, is accelerating adoption among cloud providers, with 91% of mass-capacity shipments in the June quarter attributed to nearline drives.

The company’s strategic focus on expanding HAMR production and developing 4TB-per-disk platforms aligns with cloud infrastructure expansion and edge storage needs. Management anticipates 15% revenue growth in the fiscal first quarter, supported by robust nearline product demand. However, risks include currency volatility affecting non-U.S. revenue and high debt levels, with $5 billion in long-term obligations. Despite a record 37.9% gross margin, leverage could constrain dividends or buybacks.

A backtested strategy of buying the top 500 stocks by daily trading volume from 2022 to present yielded a 31.52% total return over 365 days, with an average 0.98% one-day return. This highlights short-term momentum potential but underscores market volatility and timing risks inherent in such approaches.