Billionaire Stan Druckenmiller Is Betting On AI Infrastructure, Tobacco and Industrial Stocks

5. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 44

Duquesne Capital’s Stake: $181,268,000

Seagate Technology Holdings plc (NASDAQ:STX) engages in the provision of data storage technology and infrastructure solutions in Singapore, the United States, the Netherlands, and internationally. The rise of solid state drives over the past few years had turned attention away from hard disk drives, one of the most-selling products of the company. However, the management of the tech firm believes that the AI data center can prove to be beneficial for the shares in the long term. In the recent earnings call, the company claimed that over the next several years, the volume of AI-generated content was expected to increase and also shift towards more imagery and videos, which can be up to 1,000 times larger than text. These trends, per the firm, would bode well for HDD demand over the long term, as HDDs remained the most cost-effective means to house and subsequently use mass capacity data.

There seems to be some truth to these claims. According to consensus estimates, the revenue growth for Seagate Technology Holdings plc (NASDAQ:STX) is forecast to climb by 37% next year and 13% in fiscal 2026. The impact on earnings over this time period is even more noticeable with the forecast for 2024 EPS of $0.96, growing to $5.64 by next year. Investment advisory Morgan Stanley has an Overweight rating on the shares with a price target of $133.