Seagate Technology stock price has gone parabolic in the past few months, helped by the ongoing demand for memory devices as the artificial intelligence industry (AI) boom accelerates. It jumped to a high of $350, up by 452% from its lowest level in April last year. This article explores what to expect ahead of its earnings.
Why Seagate Technology’s stock has soared
Seagate Technology is an “old school” technology company that manufactures data storage devices for personal computers (PC) and data centers. It focuses on hard drives and solid-state drives that are found in most devices globally.
Seagate Technology stock price has soared in the past few months because of the ongoing boom in the artificial intelligence industry, which has led to a shortage that analysts expect will go on for months.
Its performance has mirrored that of other companies in the memory industry, including popular names like Kioxia, Micron, Sandisk, and Western Digital. Other companies in the industry, like SK Hynix, Samsung, and Toshiba have also done well.
The most recent results showed that the company’s revenue continued doing well in the third quarter. Its revenue rose to $2.62 billion from the previous $2.16 billion.
This growth was accompanied by its high margins, with its gross figure rising to 39.4% from the previous 32.9%. Also, its net income rose from $305 million to $549 million, while its earnings-per-share rose to $2.43.
READ MORE: Seagate tops S&P 500 with 146% surge in 2025: what’s driving the rally and should you buy?
STX to publish its earnings
The next important catalyst for the Seagate Technology stock will be its earnings, which will come out on Tuesday. Data compiled by Yahoo Finance showed that its revenue will come in at $2.75 billion, up by 18% from the same period in 2024.
Seagate Technology’s earnings per share (EPS) is expected to come in at $2.84, up by 40% from the $2.03 it made in Q4’24. If these estimates are accurate, it means that its annual revenue will come in at $11.12 billion, up by 22% YoY.
Analysts also expect that its annual revenue will jump to $13.2 billion, up by 18.7% on a YoY basis. This revenue growth will happen as demand for its storage solutions soar because of the AI boom and the ongoing PC refresh stage.
Still, it is unclear whether the Seagate Technology stock price will continue rising or not. Fundamentally, the stock has become highly overvalued; technically, it has become highly overbought.
Also, there is a risk that the memory industry will go through the boom and bust it is accustomed to.
Seagate stock technical analysis
The daily timeframe chart shows that the Seagate Technology stock price has been in a strong uptrend in the past few months. It has formed an ascending channel and is now near the upper side.
The stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued rising.
Therefore, there is a likelihood that the stock will pull back as sellers target the lower side of the channel at $300. However, a move above the upper side of the channel will point to more gains, potentially to the psychological level at $400.
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