Seagate Technology Holdings PLC (NASDAQ:STX) shares surged following a massive third-quarter earnings beat fueled by rising artificial intelligence (AI) demand—a trend highlighted by CNBC's Jim Cramer and detailed by CEO Dave Mosley during the company’s latest earnings call.
The ‘Smart Moment’ And Agentic AI
Following Seagate's latest earnings call, Cramer took to X to highlight a specific exchange regarding the future of AI data storage.
“Smart moment on the Seagate call where they are asked to talk about use cases that use a lot of memory and can spiral into gigantic data sets: the process of FAQs,” Cramer posted.
He was referring to comments made by Mosely regarding the rise of Agentic AI. Mosley explained that AI-driven frequently asked questions are evolving from simple periodic queries into continuous, autonomous workflows.
These intelligent agents “reference enormous data sets to draw your conclusion and you may actually create new data,” driving an unprecedented need for mass capacity hard drives.
Entering A Period Of ‘Structural Growth’
This AI-driven data explosion translated into a stellar financial quarter for the storage giant. Seagate reported quarterly revenue of $3.11 billion—a 44% year-over-year increase—and non-GAAP earnings per share of $4.10, comfortably beating Wall Street estimates.
“We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand,” Mosley stated during the call.
Reflecting this high conviction, management significantly raised its annual revenue growth target from the low-to-mid teens up to a minimum of 20% over the next few years. The company’s profitability also reached record highs, generating $953 million in free cash flow.
Cramer had earlier described STX’s earnings as having an “insane beat” versus estimates.
A High-Density Future
To meet the market’s accelerating needs, Seagate is aggressively scaling its high-density HAMR-based Mozaic platforms. With nearline capacity almost fully allocated through calendar 2027, the company is demonstrating immense pricing power.
As the tech industry shifts toward heavy data retention for AI compliance and reasoning, Seagate’s strategic focus on areal density ensures it will remain the backbone of this rapidly expanding “gigantic data” era.
STX Stock Soars In 2026
STX stock has surged 110.26% year-to-date, while the Nasdaq Composite index advanced 6.15% over the same period. Furthermore, the stock was up by 159.65% in the last six months and 604.76% over the year.
The stock closed Tuesday 2.82% lower at $579.03apiece. However, it was up 17.60% in premarket on Wednesday. Benzinga’s Edge Stock Rankings indicate that STX maintains a strong price trend in the short, medium, and long terms, with a poor growth ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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