Seagate’s 485% Run Isn’t Over and Our Target Proves It

The post Seagate’s 485% Run Isn’t Over and Our Target Proves It appeared first on 24/7 Wall St..

Few stocks have run as hard as this one. Seagate Technology (NASDAQ:STX) is up 485.78% over the past year and 216.08% year to date, riding a hyperscaler storage cycle that has turned a legacy hard drive maker into one of the loudest AI infrastructure trades in the market. The question now is whether the setup still pays from here.

Our 24/7 Wall St. price target for Seagate is $916.29, roughly 5.53% above the current $868.26 quote. We rate STX a buy with high conviction at a 90% confidence level.

24/7 Wall St. Price Target Summary

Metric	Value
Current Price	$868.26
24/7 Wall St. Price Target	$916.29
Upside	5.53%
Recommendation	BUY
Confidence Level	90%

A Blowout Quarter, Then a 10% Pullback

Seagate’s most recent report was a statement quarter. Fiscal Q3 2026 revenue hit $3.11 billion, up 44.1% year over year, and non-GAAP EPS came in at $4.10 versus a $3.50 consensus. Non-GAAP gross margin expanded to 47% from 36.2% a year earlier, and free cash flow jumped to $953 million. Management guided Q4 revenue to $3.45 billion and EPS to $5 at the midpoint.

Since then the stock has traded like a coiled spring. STX is down 10.35% over the past week after a 10.38% drop on July 2 tied to AI supply glut chatter across memory names. It sits 17% below its 52-week high of $1,144.18.

The Case for $1,200+

Bulls have real ammunition. Melius Research just initiated coverage at Buy with a $1,600 target, Cantor Fitzgerald upgraded to Overweight at $1,300, and Bank of America raised its target to $1,150. Our bull-case scenario puts STX at $1,203.83 in twelve months.

The thesis is straightforward. Nearline capacity is fully allocated through calendar year 2026, with orders for the first half of 2027 opening soon.

HAMR-based Mozaic drives are qualified with all five of the largest cloud customers, and CEO Dave Mosley told investors that “Seagate is entering a new era of structural growth as AI applications amplify data creation.” Agentic AI and video workloads sit at the center of that demand. YouTube alone now sees 20 million uploads daily, up from 2 million three years ago.

What Could Go Wrong

The bear math is straightforward. STX trades at a trailing P/E of 78, well above the sector average near 35. Our bear-case scenario lands at $678.44, roughly a 21.86% drawdown, driven by the risk of pricing pushback on 2027 contract renewals and a memory-sector rotation.

Insider activity is the other flag. There have been 243 recent insider transactions skewed to selling, and Mosley sold 9,343 shares on July 1. In fairness, that trade was executed under a Rule 10b5-1 plan adopted in February and represents a small slice of his 319,380 remaining shares, so labeling it a conviction signal is a stretch.

Seagate Price Prediction 2026-2030

Our 24/7 Wall St. price target of $916.29 keeps us constructive. The confidence level is 90%, and the tipping factor is the contracted demand book through 2026 paired with 47% gross margins.

The setup looks more attractive on any pullback toward the 50-day moving average of $840.19 if HAMR qualifications continue and Q4 lands inside guidance. The thesis weakens if 2027 pricing negotiations disappoint or if hyperscaler capex growth flags.

Year	24/7 Wall St. Price Target
2026	$916
2027	$968
2028	$1,020
2029	$1,070
2030	$1,121

These projections assume Seagate executes on its HAMR roadmap toward 5 TB per disk by 2028 and that hyperscale storage demand holds. Meaningful upside or downside will hinge on 2027 contract pricing and the durability of AI-driven data growth.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Seagate Technology didn’t make the cut. Grab the names FREE today.

The post Seagate’s 485% Run Isn’t Over and Our Target Proves It appeared first on 24/7 Wall St..