Seagate Technology’s impressive 73% stock rally in 2025 highlights a less glamorous but absolutely critical story in the AI revolution: data storage. While flashy AI companies snatch headlines, Seagate quietly rakes in growth riding AI’s voracious appetite for data capacity in cloud data centers.
Why is this exciting? Because AI isn’t just about smarter algorithms—it’s about the infrastructure that feeds those algorithms the petabytes of data they need. Seagate dominates with a 40% share in a market poised to nearly double by 2028, reflecting a massive, sustained demand cycle. This is no fleeting hype; it’s a fundamental shift in how data at scale is stored and accessed, and cost-effective hard drives remain the backbone.
From a pragmatic investor's perspective, Seagate’s fairly valued stock (trading at 16 times forward earnings versus the tech average of 29) with solid revenue and earnings projections is a compelling bet. It reminds us to look beyond the AI front-end glam and appreciate the essential, data-heavy underpinnings enabling that innovation.
In the wider AI narrative, Seagate’s story encourages critical thinking: as AI grows, so does the need to solve real-world infrastructure problems—storage, energy, cooling, and data transfer. These are where durable, long-term investment opportunities lie, because without robust infrastructure, AI can’t scale reliably.
So while everyone’s dazzled by the shiny new AI tools, remember to tip your hat to the unsung heroes like Seagate helping power this data-driven future. It’s a good reminder that in tech, the foundation sometimes makes the best marquee act. Keep an eye on these backbone innovators; they’re often the smartest bets in the chaotic AI gold rush. Source: Undervalued and Profitable: This Artificial Intelligence (AI) Stock Has Soared 73% in 2025, and It Could Still Jump Higher
