Seagate Technology (STX) Shares Rally 10.54% on AI-Driven Storage Demand, HAMR Tech Gains

Seagate Technology (STX) shares surged to a new high of $216.64, marking their strongest level since September 2025, with an intraday gain of 2.89%. The stock has climbed 10.54% over four consecutive trading days, reflecting renewed investor confidence in the company’s strategic positioning within the AI-driven data storage market.

The rally is driven by surging demand for high-capacity storage solutions as artificial intelligence (AI) models expand. Seagate’s mass capacity revenue from cloud clients hit $2.0 billion in fiscal Q4 2025, underscoring its critical role in supporting large-scale AI infrastructure. The company’s focus on heat-assisted magnetic recording (HAMR) technology, which enhances storage density and reduces operational costs for cloud providers, has positioned it as a key enabler of the next phase of AI growth.

Analyst sentiment has further bolstered the stock’s momentum. Recent upgrades from major Wall Street firms, including Bank of America and Benchmark, have set price targets as high as $250 per share. These ratings highlight Seagate’s transition from a traditional hardware player to a core infrastructure provider for AI, with non-GAAP earnings per share reaching $8.10 in FY2025. Strong free cash flow generation of $818 million in the same period has reinforced its ability to fund innovation while maintaining shareholder returns.

While valuation debates persist—analysts project a fair value of $170, versus the current price—long-term optimism remains rooted in Seagate’s leadership in HAMR and its alignment with the AI storage boom. The company’s strategic differentiation in the competitive landscape, coupled with institutional support, has shifted market perception toward a growth narrative. Risks such as geopolitical uncertainties and potential disruptions from emerging storage technologies are acknowledged but seen as secondary to its current momentum.