20 Best Data Center Stocks to Buy According to Billionaires

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13. Seagate Technology Holdings Plc (NASDAQ:STX)

Number of Billionaire Investors: 14

Billionaire Holdings: $676 million

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.

In its Q2 2025 earnings call, Seagate Technology Holdings Plc (NASDAQ:STX) highlighted the growing role of HDDs in mass data storage, driven by the expansion of GenAI-generated imagery and video, which is expected to surge 170x from 2024 to 2028. Management emphasized that data centers will continue integrating both HDD storage and NAND flash memory to support diverse workloads. Seagate saw strong demand across most sectors, with cloud leading growth, driving a 50% YoY revenue increase and EPS rising to $2.00 from $0.12. The company resolved prior supply constraints and expects its Intevac acquisition to strengthen its HAMR technology business.

On March 12, a Bank of America analyst reaffirmed a Buy rating on Seagate Technology (NASDAQ:STX) but lowered the price target from $130 to $112. The analyst highlighted the strong cyclical upswing in the HDD industry, driven by growing demand from cloud, AI, and video storage. Seagate is well-positioned to boost revenue and expand margins as exabyte shipments rise. However, the analyst adjusted the price target to account for higher tax expenses, despite maintaining a positive long-term outlook on the company’s growth potential.

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