WDC - Seagate Technology: Recent Performance Clouds Long-Term Optimism
2024-07-09 05:22:08 ET
Summary
- AI growth has led to increased demand for data storage, benefiting companies like Seagate.
- Seagate and Western Digital have seen steady growth since late 2022, with Seagate currently having a great valuation.
- Seagate's technological advancements and earnings performance build confidence in its future growth, despite short-term concerns.
Introduction
To say that AI has grown over the last year and a half would be a gross understatement, it has allowed companies like Microsoft (MSFT) and Nvidia (NVDA) to soar to new heights by taking advantage of this growth. One sub-sector in particular that has been somewhat overlooked in terms of its growth is data storage, with companies being able to take advantage of the large amounts of storage required to accommodate some AI models. As a result, companies like Seagate ( STX ) have seen steady growth since AI began to increase in popularity in late 2022. I think that as AI continues to grow thanks to investments from top tech companies, we will also see growth for STX and other data storage companies due to the AI boom....
Seagate Technology: Recent Performance Clouds Long-Term Optimism