Key Highlights
- Seagate Technology (STX) reached a record peak of $843.28 on May 26, 2026, surging over 630% year-over-year.
- Bank of America Securities increased its target price to $900 from $840, reaffirming a Buy rating following a client call with the CEO.
- Evercore ISI established a $1,000 price objective, emphasizing HAMR technology advances and enhanced storage capacity.
- The company’s Mozaic 3 platform has achieved full qualification across all targeted cloud service providers, while Mozaic 4 is already being tested by two clients.
- A total of 18 Wall Street analysts have increased their profit forecasts; cloud services now represent approximately 65% of total revenue.
Seagate Technology (STX) shares climbed to an unprecedented high of $843.28 on May 26, 2026, completing a remarkable rally that exceeded most market expectations. The data storage giant’s shares have skyrocketed more than 630% during the trailing twelve-month period.
Seagate Technology Holdings plc, STX
This surge positions STX among elite market performers. Sporting a market capitalization of $187.45 billion alongside a price-to-earnings multiple of 77.42, the shares are commanding a significant premiumāthough at least one analytical framework suggests caution. InvestingPro calculates an intrinsic value of $591.01, indicating the stock may be trading above fundamental levels.
Despite valuation concerns, Wall Street analysts remain optimistic. BofA Securities increased its price objective to $900 from $840 on Monday, maintaining its Buy recommendation. The upgrade followed a conference call with CEO Dr. Dave Mosley, where the firm gained confidence in the storage demand environment.
The new BofA target applies a 31x multiple to projected calendar 2027 earnings per share of $29.28, an increase from the previous 29x multiple. The enhanced valuation reflects growing confidence in sustained demand trends and the company’s ability to maintain favorable pricing.
Wall Street Turns Increasingly Bullish
Bank of America isn’t the only firm raising expectations. Evercore ISI boosted its target to $1,000 from $750, highlighting Seagate’s advancement in HAMR (Heat-Assisted Magnetic Recording) technology as a critical catalyst for future storage density improvements. Rosenblatt Securities matched that $1,000 projection. TD Cowen elevated its target to $850 from $500, noting a substantial transformation in the company’s revenue composition.
Cloud computing now generates approximately 65% of Seagate’s total sales, representing a dramatic increase from historical levels. This strategic shift has fundamentally altered perceptions regarding the firm’s pricing leverage and profitability potential.
Demand drivers are diversifying across multiple sectors. BofA analysts highlighted expanding requirements for video storage, unstructured data management, robotics applications, and systems requiring data redundancy and backup capabilities. Conventional enterprise data centers and edge computing deployments are also experiencing growth.
Revenue expanded 29% over the past year. Third-quarter financial results exceeded analyst projections, while fourth-quarter guidance surpassed both BofA’s estimates and broader consensus expectations. Pricing metrics measured in dollars per terabyte increased 6% compared to both the previous year and the prior quarter.
Technology Advances Driving Future Growth
On the innovation front, Seagate has successfully completed qualification processes for its Mozaic 3 drive systems across every planned cloud infrastructure customer. Additionally, two major clients have already qualified the company’s next-generation Mozaic 4 technology.
HAMR represents the cornerstone of Seagate’s strategic vision. This breakthrough enables substantially greater storage density per physical driveādelivering critical advantages as hyperscale cloud providers seek to optimize data center economics while accommodating explosive data volume growth.
In recent corporate actions, Seagate executed exchange agreements covering $185.9 million of its 3.50% Exchangeable Senior Notes scheduled to mature in 2028, converting them into a combination of cash and common shares.
According to InvestingPro analytics, 18 sell-side analysts have upgraded their earnings projections ahead of the upcoming earnings announcement. The company maintains a “GREAT” financial health rating of 3.39 on InvestingPro’s scoring system.
As of the most recent trading data, STX shares were changing hands around $833.37, representing an intraday gain of approximately 2.54%.
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