Seagate Technology Holdings (STX) shares fell approximately 0.4% to $427.48 during Monday afternoon trading, underperforming a generally stronger technology sector. The decline occurred even as two prominent Wall Street firms issued increased price targets for the data storage company.
Analyst Actions Contrast with Stock Movement
Loop Capital significantly raised its price target for Seagate to $700 from $465, maintaining a buy rating. Concurrently, UBS lifted its target to $440 from $385 but reiterated a neutral stance on the stock. These adjustments reflect a divided analyst view, with some bullish on tight hard disk drive (HDD) supply dynamics and others cautious following the stock's rapid appreciation.
Seagate has become a focal point for investors betting on the artificial intelligence data center expansion. The company recently projected third-quarter revenue and profit ahead of Wall Street expectations, citing robust demand for data storage as enterprises accelerate AI initiatives. CEO Dave Mosley emphasized that modern data centers require "performance and cost-efficiency at exabyte-scale."
Market Context and Upcoming Catalysts
The stock's pullback follows a significant surge from late January and highlights its sensitivity to shifts in market sentiment. Investors are reportedly reducing exposure ahead of key U.S. macroeconomic releases. High-growth tech hardware names like Seagate are often among the first impacted when concerns about interest rates intensify.
Attention now turns to impending economic reports. The U.S. Labor Department's January jobs figures are scheduled for release on Wednesday, February 11, followed by the Consumer Price Index (CPI) for January on Friday, February 13. These data points are expected to influence expectations for Federal Reserve policy and, consequently, technology sector valuations.
Within the storage sector, peers showed gains on Monday. Western Digital (WDC) advanced about 1.5%, NetApp (NTAP) added 0.4%, and Pure Storage (PSTG) jumped nearly 4.8%.
