{"id":5405,"date":"2026-07-11T15:18:11","date_gmt":"2026-07-11T15:18:11","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5405"},"modified":"2026-07-11T15:18:11","modified_gmt":"2026-07-11T15:18:11","slug":"seagate-stock-jumps-as-wells-fargo-upgrade-boosts-ai-storage-outlook","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5405","title":{"rendered":"Seagate stock jumps as Wells Fargo upgrade boosts AI storage outlook"},"content":{"rendered":"
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Seagate Technology (STX) shares rose on Friday after Wells Fargo upgraded the data storage company to an Overweight rating. <\/p>\n

The analyst cited growing confidence in its long-term earnings potential and sustained demand for hard-disk drives (HDDs) driven by artificial intelligence infrastructure.<\/p>\n

The upgrade comes after Seagate shares pulled back in recent weeks amid concerns over the sustainability of AI-related spending, despite the stock remaining up more than 500% over the past 12 months. <\/p>\n

Rival Western Digital (NASDAQ: WDC), which has also benefited from the AI infrastructure boom, is up nearly 800% over the same period.<\/p>\n

Wells Fargo upgrades Seagate, raises earnings outlook<\/h2>\n

Wells Fargo analyst Aaron Rakers upgraded Seagate from Equal Weight to Overweight and raised the firm’s price target to $1,100 from $900.<\/p>\n

“With the recent market pullback and increasing confidence in what we view as a path to plus-$50 earnings-per-share and significant (capital) return capacity ahead, we upgrade STX to Overweight with a $1,100 price target,” Wells Fargo analyst Aaron Rakers said in a note for clients.<\/p>\n

Rakers also lifted his price target on Western Digital to $730 from $575 while maintaining an Overweight rating.<\/p>\n

The analyst said he remains “positive on HDDs” ahead of June-quarter earnings and increased estimates for both companies. <\/p>\n

He projects Seagate’s annual earnings per share will rise from $21.60 this year to $53.69 by 2028.<\/p>\n

Rakers expects both storage companies to emphasize “extending demand visibility” through long-term purchase agreements with customers.<\/p>\n

AI infrastructure spending supports storage demand<\/h2>\n

Seagate said during its latest earnings call that the top three global cloud service providers have nearly doubled their Remaining Performance Obligations (RPO) to a record $1.1 trillion, reflecting growing long-term commitments for cloud and AI infrastructure.<\/p>\n

The company said the expanding pipeline of contracted revenue should support demand for its high-capacity storage products.<\/p>\n

Seagate also highlighted strong momentum for its Mozaic platform and Heat-Assisted Magnetic Recording (HAMR) technology, with its 3TB-per-disk HAMR drives shipping to its first cloud service provider during 2025.<\/p>\n

According to the company, AI applications are driving higher data creation, longer retention requirements and greater reliance on historical datasets, increasing demand for cost- and energy-efficient HDDs.<\/p>\n

Seagate said its strategy is built around durable storage demand, a strong technology roadmap and disciplined execution. <\/p>\n

It also raised its annual revenue growth outlook to at least 20%.<\/p>\n

The company added that nearline storage products account for about 90% of exabyte shipments, with production capacity largely allocated through 2027 under long-term supply agreements, build-to-order contracts and value-based pricing arrangements.<\/p>\n

Western Digital and Micron also benefit from AI trend<\/h2>\n

Western Digital continues expanding its Platforms business to serve enterprise and mid-scale cloud customers while increasing adoption of its UltraSMR technology.<\/p>\n

The company said three of its largest customers have already adopted UltraSMR, with management expecting all major customers to qualify the technology by the end of calendar 2027.<\/p>\n

Micron Technology is also strengthening customer commitments through long-term supply agreements across data center, consumer and automotive markets.<\/p>\n

The memory-chip maker said it has signed 16 strategic customer agreements<\/a> covering roughly 20% of DRAM volumes and one-third of NAND volumes during the contract period. <\/p>\n

Fourteen of those agreements represent approximately $100 billion in cumulative minimum contract revenue and include projected customer deposits and financial commitments totaling $22 billion, including about $18 billion in cash deposits. <\/p>\n

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The post Seagate stock jumps as Wells Fargo upgrade boosts AI storage outlook<\/a> appeared first on Invezz<\/a><\/p>\n

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Seagate Technology (STX) shares rose on Friday after Wells Fargo upgraded the data storage company to an Overweight rating. The analyst cited growing confidence in its long-term earnings potential and sustained demand for hard-disk drives (HDDs) driven by artificial intelligence infrastructure.The upgrade comes after Seagate shares pulled back in recent weeks amid concerns over the…<\/p>\n","protected":false},"author":1,"featured_media":5406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5405"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5406"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}