Wall Street Analyst Predicts Seagate Technology Stock to Increase by 21%

Recently, Seagate Technology (STX -0.56%) stock has experienced a significant rally due to improvements in the data storage industry and anticipation of increased demand for artificial intelligence (AI) technology. The company’s share price has seen a substantial increase, rising by 11% since the beginning of 2024 and climbing by 54% over the last 12 months. Morgan Stanley upgraded its rating on Seagate stock from equal weight to overweight and raised its price target from $73 to $115 per share.

The data storage market is known to be cyclical, with demand and pricing trends fluctuating over time. Currently, Seagate appears to be in a favorable position with tailwinds supporting its growth. Morgan Stanley anticipates Seagate’s earnings for the year to be 25% to 30% higher than previously estimated, with the potential for AI-related storage needs to provide a long-term boost. As the demand for AI technology continues to rise, Seagate could be entering a period of significant growth.

Seagate is well-positioned in the industry and stands to benefit from cyclical improvements, as well as increased demand due to advancements in AI technologies. While the exact impact of AI on Seagate’s business remains to be determined, the overall trend suggests that the company is on the cusp of a period of robust growth. This aligns with Morgan Stanley’s positive outlook on the stock as a promising investment opportunity. The potential for Seagate to capitalize on the growing demand for data storage solutions in the AI sector indicates a promising future for the company in the tech industry.

By Sophia Gonzalez

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