15 Most Promising Technology Stocks to Buy Now

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8. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Funds: 46

Potential Upside: 23%

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.

The exponential growth in data generation, driven by cloud computing, artificial intelligence, big data analytics, and edge computing, fuels the demand for Seagate Technology Holdings plc (NASDAQ:STX)’s high-capacity storage products. The company’s dedication to heat-assisted magnetic recording (HAMR) technology aims to deliver higher storage densities, addressing the evolving needs of data centers and enterprise customers.

In a move to advance its HAMR technology, Seagate Technology Holdings plc (NASDAQ:STX) announced its acquisition of Intevac Inc. (NASDAQ:IVAC) on February 13, in an all-cash transaction valued at $119 million. Intevac Inc. (NASDAQ:IVAC)’s 200 Lean platform holds a significant market share in HDD deposition equipment and is highly favorable for HAMR business growth. Viewing the acquisition positively, TD Cowen analyst maintained a Buy rating (as of February 14) on Seagate Technology Holdings plc (NASDAQ:STX) with an unchanged price target of $135.00. The analyst believes this deal will enhance the company’s supply chain capabilities and prepare for the HAMR ramp-up. Despite the potential increase in operational expenses by approximately $30 million annually, Seagate is positioned to partially offset these costs, reinforcing the positive outlook on their stock.

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