Artificial Intelligence Arrow (AI) increased by 73 % in 2025, and could jump higher

• The prosperous demand contains the storage of the data center on the growth of Seagate Technology in the last quarters, which leads to a huge rise in the arrow.

• Seagate is trading a discount on the broader market at the present time, and this may pave the way for attractive returns over the next few years.

• 10 shares we love are better than Seagate Technology Plc ›

Storage solution provider Seagate Technology (Nasdaq: STX) It recorded a distinguished gathering in the stock market in 2025, when it increased by 73 % so far and overcomes Nasdak 7 % index returns with a huge margin.

This impressive performance can be attributed to the strong growth in storage demand in databases Artificial Intelligence (AI) Work burdens. Let’s move on how artificial intelligence feeds the growth of Seagate and see how it can pave the way for more upward trend in this technological stocks.

Seagate Technology revenues in the first nine financial months of 2025 increased by approximately 43 % on an annual basis to 6.65 billion dollars. Even better, company Unprepared The income (average) jumped more than four times during this period, thanks to higher margins.

The administration attributes this wonderful growth of healthy demand to store the collective capacity in the cloud, which has created a narrow supply environment and led to an increase in prices. The administration in the company’s profit invitation in April noted that the increasing demand for storage “is in line with the investment cycle in the Cloud Capex and the continuous construction of the data center’s infrastructure to support artificial intelligence transfers.”

Specifically, 90 % of storage is in databases widely with hard drives due to cost efficiency and expansion. With storage requirements in data centers expected to exceed twice between 2024 and 2028, Seagate estimates that this could pay annual revenues for the Data Center storage market to $ 23 billion by 2028, up from $ 13 billion in last year.

Seagate is in a strong position to achieve the maximum benefit from this growth opportunity taking into account its share of 40 % of the global storage market. It is not surprising that Seagate’s fourth quarter expectations were impressive. The company led 2.4 billion dollars in revenue in the middle of its scope, along with $ 2.40 per share in profits.

The upper instructions are good to increase 27 % on an annual basis, while profits are on the right path to more than twice the reading of the previous year of $ 1.05 per share.