The rise of artificial intelligence (AI) has introduced about great demand for computational infrastructure. However, GPUs alone are not enough since every single AI model generates and shops huge quantities of knowledge and wants high-capacity storage. That need has turned Seagate Technology (STX) into one of the greatest winners of the previous 12 months.
Now, traders await the next catalyst for the company on July 28, when Seagate is scheduled to report its fiscal fourth-quarter outcomes. Analysts expect another period of distinctive growth since management offered an optimistic outlook on efficiency and earnings.
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About Seagate Technology Stock
Seagate is one of the largest producers of onerous disk drives (HDDs), mass capability storage systems and knowledge infrastructure options. Headquartered in Dublin, Ireland and Fremont, California, Seagate serves cloud service suppliers, enterprises, and PC producers across the globe. The company at the moment has a market capitalization of $204 billion as one of the biggest beneficiaries of the AI infrastructure investment cycle.
Over the last 52 weeks, shares have surged roughly 458% and considerably outperformed the broader S&P 500 Index ($SPX). Despite the latest rally, STX stock also trades roughly 34% away from its 52-week high of $1,145.
STX stock has seen explosive price appreciation, but traders may discover Seagate more attractively valued than other AI infrastructure shares. STX stock trades at roughly 33.8 instances ahead earnings. However, the trailing a number of of 77.8 instances is rather high as earnings catch up with the company’s fast growth. The price-to-sales (P/S) ratio of 17.4 instances is also a premium a number of for which traders appear to be prepared to pay.
Unlike many other technology corporations, Seagate gives income to its shareholders. In April, the company declared a quarterly dividend of $0.74 per share, payable on July 7. Over time, Seagate should proceed to pay dividends and buy back shares.
Seagate Exceeded Estimates in Q3
Seagate reported another distinctive quarter on April 29 with its Q3 2026 outcomes. Revenue elevated to $3.11 billion, growing 44% year-over-year (YOY). Non-GAAP EPS reached $4.10 in contrast to $1.90 per share in the year-ago period. Non-GAAP gross margin also elevated to 47%, exhibiting bettering pricing and product combine as storage demand grew due to AI development.