STX Stock Surges Overnight On Blowout Memory Forecast, Lifts Storage Peers

• Seagate’s fourth-quarter revenue and profit forecasts came in higher than analysts’ expectations.
• STX rose 19% in Tuesday’s extended session; peers WDC, SNDK, and MU also gained.
• Stocktwits sentiment for STX climbed higher in the ‘extremely bullish’ zone.

Seagate Technology Holdings’ shares rallied 19% in overnight trading on Tuesday, also lifting peer memory chip stocks, after the company posted quarterly results and forecast that handily beat Wall Street’s expectations.

Coming just ahead of reports from Western Digital and SanDisk, Seagate’s report all but confirmed that the demand for storage chips and components remains elevated. Western Digital shares gained nearly 10%, while SanDisk stock rose 4.4%. Shares of memory chip maker Micron rose 3%.

For a year now, memory chip stocks have been on a roll as surging demand from AI data centers has driven shortages and price hikes across the industry. Analysts believe the sector is in a “super cycle,” and the trend might continue for a few years.

"We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand," Seagate CEO Dave Mosley said in the earnings press release. "Through disciplined execution, we are strategically positioned to capture these opportunities and drive profitable growth and long-term value creation."

STX Results, Forecast

Seagate forecast fiscal fourth-quarter ​revenue with a midpoint of $3.45 ​billion, plus ⁠or minus $100 million, compared with estimates of $3.16 billion from LSEG/Reuters.

It projected quarterly adjusted profit of $5 per share, plus or minus $0.20, while analysts were expecting $3.97. The company said its outlook assumes minimal expected impact from tariff policies or the war in Iran.

In the fiscal third quarter, revenue rose 44% to $3.11 billion, above analysts' expectations of $2.96 billion. Net profit more than doubled to $748 million from $340 million a year earlier. On an adjusted basis, earnings were $4.10 a share versus the expectation of $3.51 a share.

Retail’s View On STX

STX was among the top trending tickers on Stocktwits late Wednesday, with retail sentiment climbing multiple points higher in the ‘extremely bullish’ zone (96/100). 

“$STX It's not too late to jump on the memory gravy train! They are fully committed thru 2027 and booking 2028,” said a trader.

To be sure, with STX having already gained about 620% from its 52-week low about a year back, some traders remained concerned about future gains. “$STX ​​It’ll go red. Just watch,” a trader wrote.

STX shares are up 110% year to date, as of their last close. Western Digital and SanDisk will report their quarterly results on Thursday. Micron has yet to set a date.

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