Seagate Technology shares advanced Friday, building on a powerful multi-week run as the market continues to reward companies levered to data-center expansion and AI-driven storage demand. The most recent company-specific catalyst is Seagate’s decision to sell its Lyve Cloud business to Wasabi Technologies in return for an equity stake, a move investors are treating as a simplification trade that tightens management focus on mass-capacity storage where demand has been surging.

Seagate agreed to divest Lyve Cloud to Wasabi Technologies, receiving equity in Wasabi and becoming a shareholder. The transaction reframes Seagate’s cloud offering from an operating business into a financial/strategic stake, while allowing the company to concentrate resources on its HDD portfolio that benefits from data-center buildouts and capacity-hungry AI workloads.

Beyond the divestiture, Seagate has been benefiting from a broader narrative of tight nearline capacity and rising storage needs tied to AI training and inference pipelines. The stock has also been supported by a steady stream of analyst target increases in recent months, reinforcing the market’s view that earnings power has structurally improved versus prior cycles.