Wall Street Can’t Get Enough of Seagate Technology Stock After Its Major Earnings Win

Seagate Technology (STX) stock has delivered phenomenal returns of almost 700% in the last 52 weeks on the back of AI demand, which has translated into a demand-supply mismatch for storage products. Strong demand coupled with price increases for storage drives has helped Seagate's top line grow and margins expand. This has triggered positive price action for STX stock as cash flows swell. 

Seagate reported third-quarter earnings on April 29. Results and guidance topped Wall Street’s estimates. With STX stock surging higher on the news, some analysts have also upgraded their price targets. One key rating upgrade catalyst was Seagate's minimum 20% annual revenue growth guidance for the next few years. Further, with nearline capacity “almost fully allocated through calendar 2027” according to CEO Dave Mosley, there is clear revenue and cash flow visibility.