Article by Edward Sheldon
Seagate Stock is Now Seeing Price Targets of $1,000
May 19, 2026 | Research Insights
Alongside Micron and SanDisk, Seagate Technology stock has been a major beneficiary of the global memory shortage in 2026. Year to date, the stock has climbed from $275 to $733 – a gain of around 167%1.
Looking ahead, numerous Wall Street firms see further upside amid the growing demand for memory chips. Recently, several firms have penciled in $1,000 as a medium-term price target.
44% Growth Last Quarter
In late April, Seagate posted its earnings for the third quarter2 of its fiscal 2026. And the print was strong.
For the quarter, revenue came in at $3.1 billion, an increase of 44% year-over-year. Non-GAAP net income was $934 million versus $407 million a year earlier.
Earnings per share for the quarter amounted to $4.10. This was well above the consensus forecast3 of $3.51.
On the back of this performance, the company returned $191 million to shareholders through dividends and share repurchases. It was also able to retire $641 million in debt, strengthening its balance sheet.
Better-Than-Expected Guidance
As well as beating analysts’ estimates for Q3, Seagate also provided better-than-expected guidance. It now expects Q4 revenue of $3.45 billion, plus or minus $100 million, compared with estimates of $3.16 billion going into the print.
In terms of earnings for Q4, the company is projecting $5, plus or minus 20 cents. Here, analysts had been expecting $3.97.
Bullish Analyst Sentiment
Since Seagate’s Q3 earnings, several Wall Street firms have raised their price targets4 for the stock to $1,000. Firms with this target price include Evercore ISI, Bernstein SocGen Group, Cantor Fitzgerald, and Rosenblatt.
Note that according to analysts at Morningstar, the AI buildout is likely to give hard disk drive makers stronger pricing power through at least 2030, and potentially longer, which could further boost stocks in this area of the chip space. “Demand for data center buildouts is only increasing, driven by long-term structural trends such as AI and Internet of Things. This could prolong the current upcycle and make it more durable than previous cycles,” they wrote in a research note5.
Understanding the Risks
That said, the analysts at Morningstar also highlighted the risks associated with investing in memory stocks. “The hard disk drive (HDD) market is commodity-like and cyclical, leaving Seagate vulnerable to market pricing declines that can shrink the top line and sink margins. In HDD downturns, these stocks can crater,” they wrote.
The cyclicality of this market is something to keep in mind. While demand for memory is high right now, there are no guarantees that it will stay high in the years ahead.
Footnotes:
1Google Finance, as of May 19, 2026
2Seagate, Seagate Technology Reports Fiscal Third Quarter 2026 Financial Results, as of April 29, 2026
3Newsfile Refinitiv, Seagate’s Q3 results beat on AI-driven demand, as of May 19, 2026
4Investing.com, Seagate Technology PLC (STX), as of May 19, 2026
5Morning Star, Seagate Technology Holdings PLC STX, as of May 19, 2026
