Bank of America analyst Wamsi Mohan reaffirmed a Buy rating on Seagate Technology and boosted his price objective by roughly 23%, reflecting stronger-than-expected fundamentals in the storage cycle. The upgrade was driven by sustained data center demand, capacity constraints that are keeping utilization near maximum levels, and the company’s ability to sell any incremental supply at market-driven rates. Mohan cited ongoing pricing momentum, with dollar-per-terabyte metrics holding flat to positive year-over-year, as a key factor supporting margin expansion through fiscal 2026.

Seagate is poised to deliver robust results in its fiscal second quarter thanks to continued strength in data center orders and seasonal rebounds in its consumer and VIA segments. Bank of America expects gross margins to expand sequentially in each quarter of fiscal 2026 as the tight-capacity environment persists. On the technology front, Seagate’s heat-assisted magnetic recording (HAMR) shipments are forecast at approximately 40 exabytes for the quarter, with around 1.3 million HAMR units delivered. Multiple global cloud service providers have already qualified the company’s Mozaic platform, and additional qualifications are anticipated in the first half of the next calendar year.