Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on Seagate Technology (NASDAQ:STX) with a price target of $175.00. The stock, currently trading at $159.21 with a market cap of $33.9 billion, is trading near its Fair Value according to InvestingPro calculations.
The research firm noted that Seagate has been one of the top performers in its coverage universe, with shares up 87% year-to-date, significantly outperforming the Philadelphia Semiconductor Index (SOX), which has gained 14% during the same period. The stock is currently trading near its 52-week high of $160.57, with analyst targets ranging from $80 to $200.
Cantor Fitzgerald expects Seagate to confirm a healthy supply and demand environment, with customer purchase orders and long-term agreements extending into the second half of 2026.
The firm also anticipates that pricing trends will continue to support gross margin improvement for Seagate, alongside reiterating confidence in the company’s technology roadmap.
Potential tariff impacts remain a key topic for investors, though Cantor Fitzgerald indicated that Seagate is awaiting clarity from the Administration regarding Section 232, with additional commentary expected in the near future.
In other recent news, Seagate Technology reported strong earnings for the June quarter, with revenue reaching $2.44 billion and earnings per share at $2.59, both surpassing consensus estimates. Despite these impressive results, the company’s guidance for the upcoming quarter fell slightly short of analyst expectations. Following this, several analyst firms have adjusted their price targets for Seagate. Benchmark increased its price target to $165, citing robust global cloud demand and record Nearline drive shipments. TD Cowen raised its target to $175, attributing the decision to momentum in Heat-Assisted Magnetic Recording (HAMR) technology and improved cloud visibility. Rosenblatt set a new target of $200, noting positive trends such as margin expansion and product mix improvements. Mizuho also adjusted its price target to $160, maintaining an Outperform rating due to strong cloud demand. These developments reflect the market’s response to Seagate’s recent performance and future prospects.
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