Seagate falls ahead of quarterly results on AI demand focus
Data storage provider Seagate Technology's STX.O shares were down 9% to $743.79 on Tuesday and falling for a third straight session heading into quarterly results due after the bell, with investors focused on AI-driven demand.
STX was losing ground as AI chip stocks extended a selloff on concerns over hefty corporate spending and heightening Chinese competition; the Philadelphia SE Semiconductor index .SOX was down about 4% to an over-two-month low on Tuesday.
In April, Seagate forecast fiscal fourth-quarter revenue of $3.45 billion, plus or minus $100 million, and adjusted EPS of $5, plus or minus 20 cents, citing strong AI demand owing to the buildout of data centers.
Wall Street analysts on average expect the company's quarterly revenue to rise 43% year over year to $3.48 billion and adjusted EPS to nearly double to $5.09 from $2.59 a year ago, per LSEG data.
Even with the decline, the stock has surged roughly 170% year to date and is the fourth-best performer in the S&P 500 .SPX, which is up about 9%. The S&P 500 Technology Hardware Storage & Peripherals index .SPLRCTHSP is up about 34% in 2026.
STX recently traded at 28 times expected earnings, versus its five-year average forward P/E of 19, according to LSEG.
The average rating of 26 analysts is "buy"; median price target is $1,000.
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