Seagate Stock Rises on Strong AI Demand and Earnings Beat

Published 10 hours agoSTX

Seagate Stock Rises on Strong AI Demand and Earnings Beat

Seagate Technology's stock has recently soared, fueled by the company's announcement of an upbeat revenue guidance driven by increasing demand for artificial intelligence applications. The tech company reported an impressive performance in its fiscal third quarter, ending March 28, 2025, with adjusted earnings per share of $1.90. This surpassed analyst expectations of $1.73, while revenue hit $2.16 billion, reflecting a 30.5% increase from the previous year.

Seagate's outlook for the fourth quarter also sparks optimism, with projected adjusted earnings per share ranging from $2.20 to $2.60 and anticipated revenue between $2.25 billion and $2.55 billion, which exceeds the current analyst forecasts. According to Investing.com, the robust performance prompted several analysts to upgrade their price targets for Seagate, including TD Cowen, which adjusted its target from $110 to $135, highlighting the impact of AI-induced storage demand.

The surge in AI applications has ramped up the need for efficient data storage solutions, and Seagate is well-placed to capitalize on this trend with its mass-capacity drives and advanced Heat-Assisted Magnetic Recording technology. The company has also formed strategic partnerships with leading cloud service and AI companies to create storage solutions tailored to AI workloads, further solidifying its position in the rapidly growing AI-driven data storage sector.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Foxconn's $1.5 Billion Bet on India Amid Trump Criticism

Foxconn's $1.5 Billion Bet on India Amid Trump Criticism

12 minutes agoAAPL

Apple's key manufacturing partner, Foxconn, is making a hefty $1.5 billion investment to expand its operations in India. The company is setting up a display module plant near Chennai, Tamil Nadu, which is expected to create around 14,000 jobs. This move comes despite criticism from former U.S. President Donald Trump and marks a significant step in Apple's strategy to diversify its manufacturing away from China, a shift that aligns with India's 'Make in India' initiative. This plant will contribute to increasing India's share in global iPhone production, which is projected to rise from 18% in 2024 to about 32% by 2025. Foxconn's expansion is part of a broader plan to move the production of most U.S.-bound iPhones to India by the end of 2025. The Financial Times reported that these efforts are supported by government incentives in India that have made it an attractive location for electronics manufacturing. The criticism from Donald Trump centers on Apple's decision not to bring more production back to the United States, preferring instead to bolster operations in countries like India. Nevertheless, Apple's strategy appears clear as it continues to expand its global supply chain infrastructure, backed by favorable policies in India designed to encourage such large-scale investments.

ULA Pursues Vulcan Rocket Upgrade to Challenge SpaceX

ULA Pursues Vulcan Rocket Upgrade to Challenge SpaceX

57 minutes agoBA

United Launch Alliance (ULA), the collaborative venture between aerospace giants Boeing and Lockheed Martin, is set to upgrade its Vulcan rocket for increased payload capacity to low Earth orbit (LEO). This move aims to present a competitive alternative to SpaceX's formidable Starship. Reuters reported that ULA is exploring various design enhancements such as the potential 'Vulcan Heavy,' which could incorporate three Vulcan core boosters, alongside other innovative configurations involving unconventional propulsion placements to bolster its market position. The timing of ULA's planned upgrades aligns strategically with the anticipated commercial viability of SpaceX's Starship, which remains dedicated to large-scale LEO satellite deployments. While detailed timelines remain flexible, ULA's development goals are set to coincide with Starship's entry into regular service, reflecting an industry-wide pivot to accommodate rapid advancements in satellite launch capacities. This development reflects ongoing competitive dynamics within the space launch sector as SpaceX accelerates its Starlink satellite deployment. In response, ULA is enhancing its technological offerings to capture a share of the growing market. The strategic initiative underscores Boeing and Lockheed Martin's commitment to maintaining a substantial foothold in the evolving landscape of aerospace and satellite launch services.

Rio Tinto CEO's Sudden Exit Jolts Company Shares

Rio Tinto CEO's Sudden Exit Jolts Company Shares

Rio Tinto is bracing for a leadership shake-up as CEO Jakob Stausholm announced he will step down later this year. This unexpected news comes after a four-year tenure that saw Stausholm steer the company through considerable investments and strategic projects. Reuters highlighted that the CEO's imminent departure has contributed to a negative reaction among investors, evidenced by a drop in the company's share price. Following the announcement, Rio Tinto's shares experienced a decline. Currently, the share price stands at 61.12 USD, reflecting a slight drop of 0.86 USD from the previous session. The stock's intraday fluctuations saw a high of 62.4 USD and a low of 61.11 USD, suggesting investor uncertainty amid the upcoming changes in leadership. Rio Tinto is actively searching for Stausholm's successor, considering a broad range of candidates both internally and externally. Potential internal candidates include Bold Baatar, Simon Trott, and Jerome Pecresse, while external figures like Tom Palmer and Andrew Cole are also in the fray. This transition period comes at a time when the new CEO will need to tackle strategic challenges, such as the reliance on iron ore and managing a dual stock listing, all part of the strategic quandaries highlighted by Reuters.

FTC Drops Price Discrimination Lawsuit Against PepsiCo

FTC Drops Price Discrimination Lawsuit Against PepsiCo

The Federal Trade Commission (FTC) has decided to withdraw its lawsuit against PepsiCo, which accused the company of offering unfair pricing advantages to retail giant Walmart. The case was initially filed in January 2025 under the Robinson-Patman Act. This development marks the end of allegations that PepsiCo's pricing strategy was discriminatory. Newly appointed FTC Chairman Andrew Ferguson criticized the lawsuit, describing it as a 'partisan misuse of taxpayer funds.' The move highlights a shift in approach within the commission under the new administration. Meanwhile, former FTC Chair Lina Khan, who was responsible for filing the case, expressed concern that dropping the lawsuit could benefit major retailers like Walmart and potentially lead to higher prices for consumers. PepsiCo has consistently denied any wrongdoing, maintaining that its pricing practices are fair and competitive. The company remains steadfast in its commitment to offering equitable pricing across various customer brackets, aligning with industry norms. Reuters reported PepsiCo's stance that it operates under a framework that ensures all customers are treated equally, dispelling claims of favoritism towards Walmart.