Seagate Technology Stock Surges to New Record High Amid AI Demand Optimism

Seagate Technology (STX) shares reached a new record high after rising 3% on Monday, extending a 90% year-to-date rally. Analyst C.J. Muse maintained a Buy rating on STX stock, citing strong demand for high-capacity hard drives and solid pricing. Muse reiterated his $175 price target, predicting 7% upside from current levels. The Moderate Buy consensus rating on STX stock is based on 13 Buys, three Holds, and one Sell assigned in the past three months.

Seagate Technology (STX) shares reached a new record high on Monday, rising 3% to extend a 90% year-to-date rally. The stock, currently trading at $159.21, has been one of the top performers in the semiconductor sector, significantly outperforming the Philadelphia Semiconductor Index (SOX), which gained 14% year-to-date [1].

Analyst C.J. Muse of Cantor Fitzgerald maintained a Buy rating on STX stock, citing strong demand for high-capacity hard drives and solid pricing. Muse reiterated his $175 price target, predicting a 7% upside from current levels. This rating is in line with the Moderate Buy consensus rating on STX stock, based on 13 Buys, three Holds, and one Sell assigned in the past three months [2].

Cantor Fitzgerald expects Seagate to confirm a healthy supply and demand environment, with customer purchase orders and long-term agreements extending into the second half of 2026. The firm also anticipates that pricing trends will continue to support gross margin improvement for Seagate, alongside reiterating confidence in the company’s technology roadmap. However, potential tariff impacts remain a key topic for investors, with Cantor Fitzgerald indicating that Seagate is awaiting clarity from the Administration regarding Section 232 [1].

In other recent news, Seagate Technology reported strong earnings for the June quarter, with revenue reaching $2.44 billion and earnings per share at $2.59, both surpassing consensus estimates. Despite these impressive results, the company’s guidance for the upcoming quarter fell slightly short of analyst expectations. Following this, several analyst firms have adjusted their price targets for Seagate. Benchmark increased its price target to $165, citing robust global cloud demand and record Nearline drive shipments. TD Cowen raised its target to $175, attributing the decision to momentum in Heat-Assisted Magnetic Recording (HAMR) technology and improved cloud visibility. Rosenblatt set a new target of $200, noting positive trends such as margin expansion and product mix improvements. Mizuho also adjusted its price target to $160, maintaining an Outperform rating due to strong cloud demand [1].

References:
[1] https://www.investing.com/news/analyst-ratings/seagate-technology-stock-rating-reiterated-at-overweight-by-cantor-fitzgerald-93CH-4208797
[2] https://www.tipranks.com/stocks/stx/forecast