• Tue. May 28th, 2024

The Rise of AI Demand Drives Seagate Technology’s Positive Outlook: Morgan Stanley’s Upgrade and Price Target

BySamantha Nguyen

Mar 27, 2024
Wall Street Analyst Predicts Seagate Technology Stock to Increase by 21%

The demand for data storage solutions in the AI industry is on the rise, and Seagate Technology (STX -0.56%) is positioned to capitalize on this trend. Over the past year, the company has experienced a significant rally due to improvements in the data storage industry and anticipation of increased demand for AI technology. Seagate’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. This positive momentum has some investors on Wall Street believing that the stock has the potential to continue rising.

Recently, Morgan Stanley upgraded its rating on Seagate stock from equal weight to overweight and raised its price target from $73 to $115 per share. If Seagate were to meet Morgan Stanley’s price target, it would reach an all-time high valuation and provide an upside of approximately 21% from its current trading price. This upgrade reflects the belief that Seagate is well-positioned in the industry, stands to benefit from cyclical improvements, and is likely to experience increased demand due to advancements in AI technologies.

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.

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

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.

Leave a Reply