Seagate Technology's remarkable 73% stock rally in 2025 shines a spotlight on an often overlooked but critically important aspect of the AI revolution: data storage. While most of us obsess over flashy AI models and breakthrough algorithms, the backbone enabling this explosion of AI capabilities is the mountains of data these models churn through—and someone has to store all that data efficiently and affordably.
Seagate's growth story is a textbook example of how foundational tech industries, like storage solutions, can ride the AI wave. With data center storage demands expected to more than double between 2024 and 2028, Seagate's 40% market share positions it as a major beneficiary of the AI infrastructure build-out. The company’s focus on cost-efficient, scalable hard drives taps directly into what data centers crave: affordable, reliable mass storage to support those AI computations.
But let's keep it real—this isn’t some get-rich-quick AI stock hype. Seagate’s fundamentals back the hype, with a near 43% revenue increase, a quadrupling of operational income, and strong guidance suggesting this momentum isn't a one-off. Plus, trading at a forward P/E of 16 against a Nasdaq average of 29, it’s a juicy value pick in the tech space.
For tech investors, this is a crucial lesson: AI isn’t just about the algorithms; it’s about the entire ecosystem supporting AI, and storage is a stealthy powerhouse in that ecosystem. As AI advances, the data demands inflate exponentially, and companies like Seagate are the unsung heroes enabling the future.
So, if you're looking to invest in AI's growth story, don't just chase the obvious flashy stocks—consider the infrastructure plays. Seagate reminds us that sometimes, the smartest move is to bet on the foundation rather than the fancy skyscraper on top. After all, even AI models need a solid place to live! Keep an eye on storage tech—it’s where the AI rubber meets the data road. Source: Undervalued and Profitable: This Artificial Intelligence (AI) Stock Has Soared 73% in 2025, and It Could Still Jump Higher
