10 Best Performing Data Center Stocks So Far in 2025

8. Seagate Technology Holdings Plc (NASDAQ:STX)

YTD Returns: 16.9%

Number of Hedge Fund Holders: 52

Seagate Technology Holdings Plc (NASDAQ:STX) is a prominent provider of data storage solutions, specializing in the design, manufacturing, and distribution of hard disk drives (HDDs) and solid-state drives (SSDs). Their products serve a wide array of applications, ranging from personal storage and computing to enterprise data centers and cloud storage infrastructures.

Seagate Technology Holdings Plc (NASDAQ:STX) has outperformed the benchmark SOX Index by approximately 13.7% in 2025, with year-to-date (YTD) returns of 16.9%. Seagate’s management asserts that data center architects will persist in adopting both hard disk drive storage and compute-oriented memory technologies such as NAND flash to address the breadth of their workloads, serving as a long-term growth catalyst. As a result, the company experienced increased demand across nearly all its end-markets in Q2 2025 (FY ending June), with the most significant growth seen in the cloud sector, leading to a 50% YoY (7% sequential) revenue increase. Profitability also improved during the quarter, resulting in an adjusted EPS of $2.0 compared to $0.12 in Q2 2024. Management also stated that the production issue causing supply constraints for the March quarter has been resolved. The company’s recently announced acquisition of Intevac Inc. (NASDAQ:IVAC) is also expected to bolster its HAMR business, which remains a growth area.

Seagate Technology Holdings Plc (NASDAQ:STX)’s rating was upgraded to Buy from Hold by a Benchmark analyst on January 22, with a price target of $120. While the analyst acknowledged the impact of supply issues on the next quarter, they believe that this should be offset by strong cloud and Generative AI demand.