Seagate Stock Draws Investor Attention As Morgan Stanley Sees Strong Storage Drive Demand Through 2028

• Morgan Stanley increased its price target on Seagate to $582 from $468, signaling a 35% upside potential.
• Morgan Stanley said Seagate overtakes Western Digital in priority, reflecting confidence in STX’s market positioning.
• Seagate’s HAMR-based platform boosts efficiency, supports up to 44 terabytes per drive.

Morgan Stanley has increased its price target on Seagate Technology Holdings PLC (STX) stock, raising it to $582 from $468 and maintaining an ‘Overweight’ rating.

The firm also named Seagate its Top Pick, overtaking Western Digital Corp. (WDC), according to TheFly. The new price target implies a 35% upside potential to the stock’s closing price on Friday.

Analyst Sees Persistent Rise In Hard Disk Drive Demand

Analyst Erik Woodring's latest research indicates a persistent rise in hard disk drive (HDD) demand, forecasting potential shortages extending through 2028. He highlighted robust demand from hyperscale data center operators, extended visibility for key customers, and firmer pricing trends projected into 2027, reflecting an overall strengthening of the HDD market.

The analyst emphasized that Seagate’s improved positioning comes amid broader market growth, with both Seagate and Western Digital benefiting from rising data storage needs. 

Seagate Technology stock traded over 5% higher by mid-morning on Monday. On Stocktwits, retail sentiment around the stock shifted to ‘extremely bullish’ from ‘bullish’ territory the previous day amid ‘high’ message volume levels. 

Scaling Storage For The AI Era

In March, Seagate launched the Mozaic 4+ system, built on heat-assisted magnetic recording (HAMR) to meet surging demand driven by artificial intelligence and large-scale cloud computing.

The Mozaic 4+ platform supports capacities reaching up to 44 terabytes and reflects real-world implementation across high-demand data center environments. The company said that its technology can significantly improve data center efficiency by boosting storage density per rack while lowering power consumption.

The company projects fiscal third-quarter 2026 revenue of approximately $2.90 billion, with a potential variance of $100 million, and anticipates adjusted earnings per share of around $3.40, subject to a fluctuation of $0.20.

STX stock has gained over 64% year-to-date. 

Also See: AEHR Stock Surges To 2023 Highs As AI Pivot, New Orders Build Buzz Ahead Of Q3 Earnings

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