Seagate Technology HoldingsNASDAQ: STX

Seagate is a promising investment option due to its strong financial results, smart strategies, and good market demand.

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Seagate Technology Holdings PLC, listed on NASDAQ as STX, is the biggest producer of hard disk drives (HDDs) and competes with Western Digital Co., which is known for its flash solid state drives (SSDs). After experiencing eight quarters of falling revenue due to an oversupply in the industry, Seagate reported an increase in revenue in the fourth quarter of fiscal 2024. This improvement led to a significant increase in expectations for the computer and technology sector for the first quarter of fiscal 2025.

Seagate Technology Holdings plc is in a strong position thanks to several factors, such as the rise of AI PCs, the growth of cloud data centers, and the upcoming updates to traditional CPU servers. The company expects to see higher profit margins due to increased demand for AI applications, especially in video and image processing, and anticipates revenue growth from its HDDs and Mozaic HAMR products. Additionally, Seagate has accumulated a large inventory in the first quarter of 2025, which could significantly boost its free cash flow throughout the fiscal year 2025.

Seagate (STX) reported quarterly earnings of $1.58 per share, which is higher than the Zacks Consensus Estimate of $1.48 per share. This is a significant improvement compared to a loss of $0.22 per share from the same time last year.

Seagate Technology predicted that its profits for the second quarter would be higher than what Wall Street expected and reported better quarterly results on Tuesday. This improvement is mainly due to a large rise in demand for its memory chips from customers around the world in the cloud sector.

FREMONT, Calif.--(BUSINESS WIRE)--Seagate Technology Holdings plc (NASDAQ: STX), a top innovator in large-scale data storage, has announced its financial results for the first quarter of the fiscal year, which ended on September 27, 2024. "Seagate has had a fantastic beginning to the fiscal year, with gross margins reaching their highest point in over ten years," stated Dave Mosley, the CEO of Seagate. "We successfully implemented our strategy to significantly increase our 28-."

Seagate (STX) will announce its earnings after the market closes. According to Alex Coffey, the company experienced a significant drop in the third quarter of 2023, but this report is anticipated to boost the stock price.

Alex Coffey starts the week by showcasing two example trades in tech stocks that will announce their earnings on Tuesday: Seagate (STX) and Texas Instruments (TXN). This segment was recorded in advance and shared after the market closed on Monday.