Should Nasdaq-100 Entry and Dividend Hike Require Action From Seagate Technology (STX) Investors?

• Seagate Technology Holdings has now joined the Nasdaq-100 index and modestly lifted its quarterly dividend to US$0.74 per share, underscoring confidence in its AI-driven, high-capacity storage portfolio and Mozaic HAMR products.
• This combination of index inclusion, AI-linked demand momentum, and dividend growth highlights how core infrastructure suppliers are increasingly central to the data economy story.
• We’ll now examine how Nasdaq-100 inclusion, with its potential to broaden Seagate’s investor base, may influence the company’s existing investment narrative.

Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

Seagate Technology Holdings Investment Narrative Recap

To own Seagate today, you need to believe mass capacity HDDs will remain critical infrastructure as AI and cloud data keep scaling, and that Mozaic HAMR adoption supports profitable growth despite high debt and NAND competition. Nasdaq‑100 inclusion and the modest dividend lift may help near term trading liquidity, but they do not materially change the key catalyst around HAMR ramp or the main risk that supply, execution or pricing missteps could crimp margins.

The most relevant update here is Seagate’s addition to the Nasdaq‑100, which can gradually widen its investor base and deepen liquidity around what has been a strong AI storage narrative. That broader ownership sits alongside management’s focus on Mozaic HAMR shipments to large cloud customers, a development many investors see as central to whether Seagate can sustain earnings momentum into the next leg of the AI and data center cycle.

Yet investors should also be aware that if SSD and QLC NAND adoption accelerates faster than expected, Seagate’s competitive position and pricing power could...

Read the full narrative on Seagate Technology Holdings (it's free!)

Seagate Technology Holdings' narrative projects $12.0 billion revenue and $2.5 billion earnings by 2028. This requires 9.5% yearly revenue growth and a $1.0 billion earnings increase from $1.5 billion today.

Uncover how Seagate Technology Holdings' forecasts yield a $289.24 fair value, in line with its current price.

Exploring Other Perspectives

Three Simply Wall St Community members currently estimate Seagate’s fair value between US$215 and about US$357, reflecting a wide spread of assumptions. Against that backdrop, the Mozaic HAMR ramp and AI driven storage demand could be important swing factors for how the company’s performance ultimately lines up with those expectations, so it is worth comparing several different viewpoints before you decide where you stand.

Explore 3 other fair value estimates on Seagate Technology Holdings - why the stock might be worth as much as 26% more than the current price!

Build Your Own Seagate Technology Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Seagate Technology Holdings research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Seagate Technology Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Seagate Technology Holdings' overall financial health at a glance.

Seeking Other Investments?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com