Data storage company Seagate Technology (STX) shares surged to a fresh record high, crossing the mark of $200 for the first time. The latest jump came after five-star-rated analyst Wamsi Mohan at Bank of America (BofA) hiked his price target for STX stock. Looking ahead, Seagate’s big jump has pushed the stock above the average Wall Street target, suggesting some short-term downside. But BofA’s bullish view points to strong long-term growth as demand for high-capacity data storage keeps rising.
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Seagate Technology designs and manufactures data storage products and is best known for its hard disk drives and enterprise storage systems. Year-to-date, STX stock has gained 145%.
Here’s Why BofA Is Bullish on STX Stock
Mohan is bullish on hard disk drive (HDD) makers, as booming AI data-center demand keeps driving strong growth for these affordable, long-term storage devices.
He expects the number of hard-drive shipments, measured in total storage capacity, to reach 1,602 exabytes this year, about 28% more than last year. That’s a bit higher than our previous forecast of 1,575 exabytes (26% growth), and he thinks demand could grow even more.
Apart from Seagate, Mohan raised his price target on Western Digital (WDC) from $100 to $123. Mohan added that even though Seagate and Western Digital have already boosted their total storage output by double-digit percentages in 2025, there still aren’t enough drives to fully meet demand, so the market remains tight.
BofA Predicts Stronger Profitability for Seagate
Mohan noted that the AI boom will generate massive amounts of data. Because of this surge, hard-drive makers like Seagate and Western Digital are investing in next-generation, high-capacity drives that can store more data and earn higher profits than older models.
He also pointed out that strong demand and limited supply have already lifted their profitability to record levels. Nonetheless, BofA estimates Seagate and Western Digital could reach 42–43% gross margins by the end of 2028. Notably, Seagate’s gross margin was 35.2% for FY25.
Mohan also stated key risks, which include a potential slowdown in big-cloud spending or new tariffs.
Is STX a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on STX stock based on 14 Buys, three Holds, and one Sell assigned in the past three months. Meanwhile, the average Seagate stock price target of $181.44 per share implies a downside risk of 14.06%.
