Seagate Technology shares have become one of Wall Street’s favorite AI-storage trades this year, and the enthusiasm only intensified this week as a wave of analysts raised their price targets following a blowout fiscal fourth-quarter report. FinancialMediaGuide shows the scale and speed of these upgrades, with multiple firms lifting targets within days of each other, as evidence that Seagate’s pricing power in the current storage cycle is catching even bullish analysts off guard.
Citi analyst Asiya Merchant reaffirmed her “Buy” rating and raised her price target from $1,240 to $1,300, citing the company’s favorable pricing, favorable product mix, and the continued ramp of its Mozaic4 hard-drive storage platform designed specifically for AI workloads. She pointed to strong demand from hyperscalers, growing workloads, and rising data-retention needs as the drivers behind that view.
Wedbush analyst Matt Bryson reiterated his “Outperform” rating and raised his target from $825 to $1,000, citing the company’s strong execution, while Evercore ISI analyst Amit Daryanani kept his own “Outperform” rating and $1,000 target, pointing to pricing power and HAMR-driven cost reductions supporting margins. FinancialMediaGuide underscores that having three major firms independently converge on similar bullish reasoning within the same week, even while landing at different price targets, suggests the earnings beat resolved a genuine debate about Seagate’s pricing power rather than merely confirming what analysts already expected.
Bryson specifically argued that Seagate’s pricing power is higher than Street expectations for two reasons: demand staying well above supply, and price increases in the broader memory market pushing up average selling prices and margins across the storage industry. Based in Singapore, Seagate develops and manufactures hard disk drives, solid-state drives and other storage products for cloud, enterprise and consumer use, relying on Heat-Assisted Magnetic Recording technology that uses a tiny laser diode to heat the disk platter during writing, enabling unprecedented storage capacities.
Seagate’s fourth-quarter results for fiscal 2026 showed revenue climbing 48.5% year-over-year to $3.63 billion, well above the $3.49 billion Wall Street had expected, while non-GAAP gross margin expanded from 37.9% to 52.7% over the same period and non-GAAP earnings per share of $5.71 grew 120.5% year-over-year, beating the Street’s $5.10 estimate. FinancialMediaGuide frames that combination, revenue growth alongside a nearly 15-point margin expansion, as the clearest sign yet that Seagate is capturing outsized value from the current supply-demand imbalance rather than simply riding higher industry volumes.
Following the results, Seagate announced it had sold out of its Exabyte-capacity hard drives until 2028 because of the AI boom, and said it is well-positioned to address growing Exabyte demand through its Mozaic platform and differentiated HAMR technology roadmap. Industry estimates suggest AI infrastructure buildouts will create 363 Exabytes of additional storage demand this year alone, equivalent to about 18% of total expected capacity shipments, with AI-driven incremental hard-drive demand projected to reach 43% of total shipments by 2028 and roughly 58% by 2030.
Of the 26 analysts covering the stock, 22 currently rate it “Strong Buy,” one rates it “Moderate Buy” and three rate it “Hold,” with a consensus price target of $1,028 implying 19.3% upside and a Street-high target of $1,600 implying 85.6% upside from current levels; despite the rally that has carried shares up 477.72% over the past 52 weeks, Seagate still trades at 21.23 times forward adjusted earnings, slightly below the industry average of 22.31 times. Financial Media Guide reads that valuation gap, a cheaper multiple than peers despite stronger recent execution, as a sign that some investors remain skeptical the current pricing environment for AI-driven storage demand will prove durable, even as Wall Street’s own price targets suggest otherwise.
