10 Important AI News on Investor Radars

6. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 46

Seagate Technology Holdings plc (NASDAQ:STX) specializes in providing data storage solutions and cloud infrastructure products.

On January 21, Seagate Technology (NASDAQ:STX) reported Q2 non-GAAP EPS of $2.03, exceeding estimates by $0.15, and revenue of $2.33 billion, up 49.4% year-over-year, surpassing expectations by $10 million. The company recorded $221 million in operating cash flow and $150 million in free cash flow. For Q3, Seagate projects revenue of $2.10 billion, plus or minus $150 million, and non-GAAP EPS of $1.70, plus or minus $0.20.

The company recently became the center of analyst attention as several revised their rating and price targets upwards for the stock. On January 22, Benchmark analyst Mark Miller upgraded Seagate (NASDAQ:STX) to Buy from Hold with a $120 price target following strong fiscal Q2 results, supported by strong cloud demand that boosted margins.

Although supply constraints may affect the March quarter, the firm expects sustained cloud demand and growth in the AI segment to drive performance in the latter half of FY25 and into 2026. Benchmark forecasts non-GAAP earnings to increase 25% year-over-year, reaching $9.96 per share.