Morgan Stanley Names Seagate a 'Top Pick' Amid Projected HDD Shortage Through 2028

Key Facts

1Western Digital is outperforming Seagate in the AI-driven storage boom.

2Western Digital features a lower valuation and robust capital returns compared to its competitor.

3Both companies are benefiting from increased HDD demand driven by AI technologies.

Morgan Stanley has upgraded Seagate Technology (STX) to its 'Top Pick' list, significantly raising the price target from $468 to $582. This bullish shift is driven by analyst projections of a persistent shortage in hard disk drive (HDD) supply that could last until 2028. Furthermore, Morgan Stanley improved its profit margin and earnings per share (EPS) forecasts for Seagate, citing stronger-than-expected pricing per terabyte. While Western Digital previously held the spotlight, this major upgrade highlights Seagate's strengthening position within the AI-driven storage market. The anticipated long-term supply constraints are expected to bolster the financial performance of leading hardware manufacturers. Investors are now closely monitoring how these supply-demand imbalances will reshape the competitive landscape between Seagate and its industry rivals.

6 months ago

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Version 16 months ago

What changed: Headline and body updated to reflect Morgan Stanley's upgrade of Seagate to 'Top Pick' and the projected HDD supply shortage through 2028.