Seagate (STX) Shares Soar 4.34% on AI Demand, 9.90% Rally Driven by HAMR Tech

Seagate Technology (STX) shares surged 4.34% on Wednesday, marking three consecutive days of gains with a 9.90% rally over the past three trading sessions. The stock reached its highest intraday level since September 2025, climbing 4.42% during the session. This momentum underscores growing confidence in the company’s strategic positioning amid surging demand for high-capacity storage solutions.

The stock’s ascent aligns with Seagate’s dominance in the AI and hyperscale computing sector, where its nearline hard disk drives (HDDs) are critical for managing large language models and generative AI workloads. Hyperscale cloud providers, including major players in the industry, have prioritized Seagate’s energy-efficient, high-density HDDs to expand infrastructure. The company’s Build-to-Order model ensures stable supply for cloud partners, with contracts extending through mid-2026, offering long-term revenue visibility.

Seagate’s technological edge is further solidified by its adoption of Heat-Assisted Magnetic Recording (HAMR) technology, which enables higher storage density while reducing power consumption. This innovation has driven record non-GAAP gross margins of 37.9% in Q4 2025 and a 39% revenue increase in its 2025 fiscal year. With HAMR-based drives scaling toward 100TB by 2032, Seagate is well-positioned to meet evolving hyperscaler needs for cost-effective, scalable storage.

Strategic partnerships with cloud leaders have amplified Seagate’s market influence. Its 30TB Exos M and IronWolf Pro drives are now standard in data centers optimizing AI training and edge analytics. Additionally, the Lyve Cloud platform—a secure, S3-compatible solution—has attracted enterprises seeking alternatives to public cloud services. These initiatives, combined with collaborations in hybrid IT ecosystems, highlight Seagate’s adaptability in addressing diverse storage demands.

Financial resilience and innovation have cemented Seagate’s leadership in the AI storage boom. With a 15% year-over-year revenue growth projected for Q1 2026, the company’s focus on margin expansion and supply chain optimization—such as the 2025 acquisition of Intevac to bolster manufacturing—positions it to navigate material shortages. As the AI storage market grows at a 10.6% CAGR through 2031, Seagate’s ability to balance density, cost, and energy efficiency ensures its continued dominance in hyperscale applications.