This AI stock jumped 73% in 2025, but it could still jump high
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The booming demand for data center storage has surpassed Seagate Technology’s growth in recent quarter, making it a massive stock.
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Seagate is currently trading at discounts in a wider market, which could pave the way for attractive returns in the coming years.
Storage Solution Provider Seagate Technology (NASDAQ: STX) Registered a great rally in the stock market in 2025, bringing an incredible 73% by the year, Nasdaq Composite 7% of the index returns significantly.
This impressive performance can be attributed to a robust growth in storage demand in the data centers running Artificial Intelligence (AI) Workload. Let’s dig into how AI is fueling Seagate’s growth and see how it paves the way for a greater range of this technology stock.
Seagate Technology revenue for the first nine months of fiscal 2025 increased by approximately 43% year-on-year to $6.65 billion. Even better, the company’s Non-gaap (Adjusted) The higher margins have resulted in revenues from operations jumping more than four times during this period.
Management has attributed this incredible growth to the sound demand for massive capacity storage in the cloud, leading to harsher supply environments and rising prices. Management said about the company’s April revenue call that the growing storage demand “aligns with the cloud Capex investment cycle and the ongoing build-out of its data center infrastructure to support AI conversion.”
Specifically, 90% of storage in large data centers is done on hard drives for cost-effectiveness and scalability. Due to data center storage requirements, which are expected to more than double between 2024 and 2028, Seagate estimates that it could boost the data center storage market’s annual revenue to $23 billion by 2028, from $13 billion last year.
Seagate is in a solid position to make the most of this growth opportunity, taking into account its 40% share of the global storage market. Naturally, Seagate’s outlook for the fourth quarter, which was recently concluded, was impressive. The company induced $2.4 billion in revenue at the midpoint of its range, earning $2.40 per share.
Topline guidance is good for a 27% increase from the previous year, but revenues are more than doubled from previous year readings of $1.05 per share.