Seagate Technologies Rallies on AI-Driven Storage Demand

Seagate Technologies shares surged 11.8% this week, buoyed by analyst Optimism around edge storage demand for AI inferencing. The hard disk drive manufacturer's HAMR technology positions it as a leader in high-capacity storage solutions, critical for deploying AI models at scale.

Upgrades from sell-side analysts reflect shifting infrastructure priorities. Where generative AI training dominated 2023, inferencing now drives investment in edge storage. Seagate stands to benefit from this transition, with one firm raising its price target from $170 to $215 while maintaining a buy rating.

The rally coincides with broader tech sector momentum. Last week's bullish AI forecasts and the Federal Reserve's first rate cut since 2023 created favorable conditions for capital-intensive tech plays. Lower borrowing costs could accelerate spending on AI infrastructure, particularly for storage solutions enabling real-time model deployment.