Seagate Technology stock has surged 73% in 2025 due to high demand for data storage

Seagate Technology’s stock has surged 73% in 2025 due to high demand for data center storage, outperforming the Nasdaq Composite. The company’s revenue increased by almost 43% to $6.65 billion in the first nine months of fiscal 2025, with adjusted income from operations quadrupling, driven by AI workload demand.

Seagate benefits from a 40% share of the global storage market, positioning it well to capitalize on the doubling demand for data center storage by 2028. The company projects annual revenue for the data center storage market to reach $23 billion by 2028. Seagate’s revenue for the fiscal year is expected to grow by 38%, with adjusted earnings set to increase sixfold to $7.91 per share.

Trading at 21 times trailing earnings and 16 times forward earnings estimates, Seagate offers an attractive valuation compared to the tech sector average of 29 times forward earnings. Investors seeking a fast-growing, reasonably priced AI stock should consider buying Seagate for potential future growth.

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