• Fri. Jun 14th, 2024

Seagate Technology’s Stock Surges After Upgrade from Morgan Stanley and Potential AI-Driven Demand Boost

BySamantha Jones

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

Today, Seagate Technology (STX) stock is experiencing a surge in its share price. As of 3 p.m. ET, the memory chip company’s stock is trading at $8.24, up 9% from its previous value. The increase in the stock’s value comes after Morgan Stanley released a note on Seagate, upgrading its rating from equal weight to overweight and raising its one-year price target from $73 per share to $115 per share.

Despite having risen approximately 56% over the past year, Seagate stock remains down around 17% from its peak. However, with the ongoing recovery in the data storage market and Seagate’s leading position in heat-assisted-magnetic-recording (HAMR) technologies, Morgan Stanley anticipates that the company will reach a new valuation high in the near future.

The analysts at Morgan Stanley believe that Seagate will benefit from several factors that are driving demand for data storage products, including AI-related demand and strong sales performance driven by HAMR technologies. With generative AI becoming increasingly popular, demand for Seagate’s products is expected to be a significant performance driver in the coming years.

Morgan Stanley’s analysts project that Seagate’s near-term earnings performance could be 25-30% better than previously expected due to these factors and an upturn in the data storage industry overall. Additionally, they believe 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 as a whole.

Keith Noonan and The Motley Fool do not have any positions in the mentioned stocks and have disclosed their policy regarding this information.

In conclusion, with strong growth prospects driven by AI-related demand and an upturn in the data storage industry overall, Seagate Technology (STX) stock looks set to continue its upward trajectory and potentially reach new valuation highs soon.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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