Seagate (STX) is one of the best-performing stocks in the S&P 500 Index ($SPX), with shares surging 253.6% this year already. The rally reflects surging investment in AI infrastructure, which is driving unprecedented demand for high-capacity storage solutions. Tight industry supply has further strengthened pricing power, driving sharp improvements in both revenue and profitability.
Despite its massive run, Seagate's growth story is far from over. In its latest quarter, the company generated $3.1 billion in revenue, up 44% year-over-year (YOY), with its data center business growing at a solid pace and accounting for the majority of its revenue. Demand from hyperscale cloud providers and enterprise customers continues to accelerate as AI workloads require larger, more cost-efficient storage systems.
