The rise of AI has quietly reshaped which corners of technology Wall Street wants to own, and data storage has gained enormous momentum in the last year.
One of the top data center storage stocks is Seagate (STX), which has returned 538% in the past year and 1,215.7% since June 2023. A major investment firm remains bullish on STX stock and recently raised its price target.
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The bullish case for Seagate stock
When an AI system stores, moves, and retrieves information, most of it is stored on hard drives in the data center. The “thinking” happens in the chips and the long-term storage remains in the Seagate disk drives.
That division has fueled a long period of growth. At the Bank of America (BAC) 2026 Global Technology Conference on June 2, Seagate CFO Gianluca Romano said the company had posted 13 consecutive quarters of revenue and profit growth, and that orders were already in hand for the next four or five quarters.
The key factor is a technology called heat-assisted magnetic recording (HAMR). It allows Seagate to include much more storage on the same drive without adding factories or drives.
Romano explained the mathematics at the conference.
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Seagate can maintain the same number of drives while increasing storage capacity by about 25% each year by adopting higher capacity models.
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Romano noted that swapping a 20-terabyte drive for a 40-terabyte drive roughly doubles the revenue a data center gets with the same physical slot.
Meanwhile, demand continues to increase. Dr. Dave Mosley, CEO of Seagate, explained that the company is targeting around 20 percent growth in storage capacity, calling it a huge compound rate. He added that customer demand for 2027 and 2028 is well above Seagate’s plan.
Mizuho raises STX stock price target to $1,090
Mizuho raised its price target on Seagate shares to $1,090 from $875 on Monday, maintaining an “outperform” rating.
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The firm now models fiscal 2027 earnings (ending in June) of $28.35 per share on $17.5 billion in revenue, both above the Wall Street consensus.
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In fiscal 2028, Mizuho expects revenue of $24.2 billion with adjusted earnings per share of $43.92.
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The investment bank set the new target at about 38 times fiscal 2027 earnings and expects earnings to rise 91%.
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The company credited Seagate’s HAMR combination and strong cloud demand extending into 2028.
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A 91% increase in earnings per share (EPS) means Mizuho expects Seagate to almost double its earnings per share in a single fiscal year.
