Mizuho Raises Its Price Target for Seagate Stocks to $1,090 on AI Growth. My Models Show 130% Potential Profits Over The Next 4 Years.

The rise of AI has quietly reshaped which corners of technology Wall Street wants to own, and data warehousing has gained tremendous momentum over the past year.

One top data center stock is Seagate (STX), which has returned 538% over the past year and 1,215.7% since June 2023. The investment giant remains focused on STX stock and recently raised its stock price target.

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Bull Case for Seagate Stock

When an AI system stores, moves, and remembers information, most of it resides on hard disk drives in the data center. “Thinking” happens on chips, and long-term storage resides on Seagate drives.

That division has fueled long-term growth. At Bank of America’s (BAC) 2026 Global Technology Conference on June 2, Seagate Chief Financial Officer Gianluca Romano said the company has logged 13 straight quarters of revenue and profit growth, with orders already in place for the next four to five quarters.

A key driver is a technology called heat-assisted magnetic recording (HAMR). It allows Seagate to pack more storage into the same drive without adding factories or units.

Romano explained the statistics at the conference.

• Seagate can store the same number of drives while increasing storage capacity by about 25% each year by adopting higher-capacity models.

• Romano noted that swapping a 20-terabyte drive for a 40-terabyte one nearly doubles the revenue a data center receives from the same space.

Demand, on the other hand, keeps rising. Seagate CEO Dr. Dave Mosley explained that the company is looking at 20 percent growth in the storage area, calling it a large aggregate amount. He added that customer demand for 2027 and 2028 is well above Seagate’s plan.

Mizuho Raises STX Stock Price to $1,090

Mizuho raised its price target on Seagate stock to $1,090 from $875 on Monday while maintaining an “Outperform” rating.

• The company now models fiscal 2027 (ending June) earnings of $28.35 a share on revenue of $17.5 billion, both above Wall Street’s consensus.

• For fiscal 2028, Mizuho forecasts revenue of $24.2 billion with adjusted earnings per share of $43.92.

• The investment bank has set a new target at 38 times earnings and expects profits to jump 91%.

• The company credited Seagate’s HAMR mix and strong cloud demand through 2028.

• The 91% jump in earnings per share (EPS) means Mizuho expects Seagate to nearly double its earnings per share in one fiscal year.