Seagate shares pop on earnings beat, better-than-expected outlook
Спикеры
Matt Bryson
— Аналитик, Woodside Capital Management
Matt Bryson of Wedbush reacts to Seagate's strong earnings beat and better-than-expected guidance, highlighting pricing leverage and tight supply in the storage market driven by AI demand. He sees similar benefits for Western Digital and NAND companies, and raised his Seagate price target to $700. The discussion covers the sustainability of pricing power and the role of hyperscalers.
- Seagate reported earnings beat with EPS of $4.10 and revenue of $3.11B, plus strong guidance.
- Matt Bryson notes unprecedented pricing leverage and gross margin expansion for Seagate.
- AI storage demand is creating scarcity, giving drive makers pricing power.
- Bryson raised his Seagate price target from $450 to $700.
- Western Digital and NAND companies are also expected to benefit from the same trends.
- Hyperscalers are absorbing higher storage costs as a small portion of total AI spend.
- Bryson does not see near-term risk of AI spend slowdown, citing continued tightening.
- Gross margins and earnings are at historic highs for Seagate.
Идеи
Seagate benefiting from AI storage scarcity.
Seagate is benefiting from unprecedented pricing leverage due to AI-driven storage demand, with supply tightness allowing gross margins and earnings to reach historic highs. The company's strong earnings beat and better-than-expected guidance confirm this trend, and the scarcity of storage gives Seagate pricing power that it has never historically had. As long as AI demand continues, Seagate should see further upside.
Western Digital gains from storage pricing.
Western Digital and NAND companies are also likely to benefit from the same pricing leverage and supply tightness in storage. If Seagate is raising prices due to scarcity, Western Digital will follow suit, and the broader shift to NAND as an alternative further supports them. This is a top idea alongside Seagate.
Далее
This CNBC video, published April 28, 2026, features Matt Bryson discussing STX, WDC. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Matt Bryson · Tickers: STX, WDC