PREVIEW: Seagate slides ahead of results as investors eye AI demand

Seagate Technology Holdings

28/07/2026 17:16

** Data storage provider Seagate Technology's STX.O shares down 9% to $743.79 on Tues and falling for third straight session heading into qtrly results due after the bell, with investors focused on AI-driven demand
** STX losing ground as AI chip stocks extend a selloff on concerns over hefty corporate spending and heightening Chinese competition; Philadelphia SE Semiconductor index .SOX down about 4% to over two-month low on Tues
** In Apr, Seagate forecast fiscal Q4 rev of $3.45 bln, plus or minus $100 mln, and adj EPS of $5, plus or minus 20 cents, citing strong AI demand owing to buildout of data centers
** Wall Street analysts on avg expect co's qtrly rev to rise 43% yr/yr to $3.48 bln and adj EPS to nearly double to $5.09 from $2.59 a yr-ago, per LSEG data
** Even with the decline, stock has surged roughly 170% YTD and is the fourth-best performer in the S&P 500 .SPX, which is up ~9%. The S&P 500 Technology Hardware Storage & Peripherals index .SPLRCTHSP up about 34% in 2026
** STX recently traded at 28 times expected earnings, vs its five-year avg forward PE of 19 - LSEG
** Avg rating of 26 analysts is "buy"; median PT $1,000

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))