Seagate (STX) Stock Falls 6% to $740 — Despite Record $834 High, AI Storage Demand and Strong Q3 Results Fuel Optimism

Quick overview

Seagate Technology’s stock has been showing negative performance for the past few days, and today as well this stock failed to record any kind of increase. At the time we are writing this article, this stock is trading at 740.84 dollars, showing more than 6 percent losses.

This stock has fallen more than 9 percent in the past five days, but before that, this stock was showing quite good performance, and on 11 May, it had hit its record high level, which is $834 level.

Seagate Technology Overview

Seagate Technology is a very famous and international company that makes a very special type of high capacity hard drives called nearline or Exos drives. These drives can store 30 terabytes or even more data inside them, and to make these devices, Seagate uses its advanced technology, which is called HAMR.

As we have mentioned, these drives are very special and can store a very large amount of data inside them which is why big companies like Amazon, Microsoft, Google, and Meta use these devices to store their large data, such as important files, videos, photos and information.

However, the popularity of this company has seen a significant increase in recent years because the demand for AI in the market has increased a lot. As we know, AI systems need a lot of space to store their data, which they use to run smart programs, so because of this, the demand for this company’s hard drives increased automatically.

Stock Weakness Despite High Demand

Despite this, the demand for this company’s products is very high in the market, this company’s stock has been showing negative performance for the past few days and the reason for this is some statements given by the CEO of this company.

The company’s CEO told the investors that their factory project may take some time because if they put all their focus on the factory, then their current work could be disturbed, and as a result, their long-term planning for introducing better technology could slow.

After hearing this statement from the company’s CEO, many investors became worried and started thinking that maybe this company is not capable of increasing its production quickly and competing with the market demand, and because of this, the company’s investors sold the company’s stocks, and due to this, the stock performance was negatively affected.

Apart from this, another thing that is negatively affecting this company’s stock is the overall weakness of the market. At this time, big technology companies are facing a lot of decline, and this is the reason why this company has also been negatively affected by it.

Strong Fiscal Q3 2026 Results

As we mentioned, this company has been performing very well over the past several months, and the proof of this is its fiscal third quarter of 2026 report, which shows that the company made 3.11 billion dollars in sales, which is 44 percent higher compared to last year, and its profit margin has also increased a lot and reached a record 47%. This is a very good and impressive result for the company. If we talk about the next quarter, this company expects to make $3.45 billion in sales.

Many analysts still have a very positive outlook on this stock and they rate it as a buy, in fact they rate it as a strong buy. The proof of this is that a very large company Evercore ISI recently increased this company’s stock price target to 1000 dollars. Another very famous analyst has also increased this company’s stock price target.

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Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.