EL7.AI
StocksMedium•6 April 2026•
1 min read

Morgan Stanley Names Seagate a Top AI Pick Amid Infrastructure Boom

Key Facts

1Morgan Stanley designated Seagate Technology (STX) as a new "top pick."
2Analysts believe investors are still not giving Seagate enough credit for its role in the AI boom despite recent gains.
3This pick aligns with the bank's broader forecast of a major AI and compute infrastructure breakthrough by 2026.

Morgan Stanley has officially designated Seagate Technology (STX) as a new "top pick," highlighting its critical role in the evolving AI landscape. Analysts at the bank argue that despite recent price gains, investors are still underestimating the company's potential within the broader AI infrastructure buildout. This bullish outlook is rooted in the bank's forecast of a significant breakthrough in global computing and AI infrastructure by 2026. The bank believes Seagate's storage solutions are currently undervalued relative to the massive demand expected from data center expansions. This upgrade positions Seagate as a key beneficiary of the hardware-focused phase of the AI trade. Market participants are closely watching the storage sector as AI models require increasingly vast amounts of data storage capacity.