• Tue. May 28th, 2024

Seagate Technology (STX) Surges in Tuesday’s Trading Session, Boosted by Morgan Stanley Upgrade and AI Demand

BySamantha Nguyen

Mar 27, 2024
The Surge in Seagate Technology Stock Prices Today

Seagate Technology (STX) stock is experiencing a surge in Tuesday’s trading session, with its share price up 9% as of 3 p.m. ET. According to S&P Global Market Intelligence data, the memory chip company’s stock is currently trading at $8.24.

Morgan Stanley released a note on Seagate this morning, upgrading its rating on the stock from equal weight to overweight. The firm’s analysts also raised their one-year price target on Seagate stock from $73 per share to $115 per share.

Despite having risen approximately 56% over the past year, Seagate stock is still down around 17% from its peak. However, Morgan Stanley’s latest coverage suggests that the firm anticipates the stock to reach a new valuation high in the near future.

The analysts at Morgan Stanley believe that Seagate will benefit from the ongoing recovery in the data storage market. They also expect the company’s leading position in heat-assisted-magnetic-recording (HAMR) technologies to drive stronger sales and earnings performance. Additionally, with the rise of generative artificial intelligence (AI), demand for Seagate’s products is expected to be a significant performance driver.

With the data storage industry experiencing an upturn and an increase in demand related to AI, Seagate’s profitability could see significant improvement. Morgan Stanley’s analysts project that the company’s near-term earnings performance could be 25-30% better than previously expected. Furthermore, there is a belief that AI-related demand will continue to boost performance and potentially lead to higher valuation multiples for Seagate and other data storage companies. This could result in improved sales, earnings, and overall market sentiment towards the sector

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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