Seagate seen as a strong buy after price drop, driven by tech innovation and strong long-term contracts.

Seagate Technology Holdings plc is considered a strong buy following a recent stock price drop, viewed as a market overreaction. The company's focus on technological innovation, especially HAMR Mozaic density improvements, is driving significant margin expansion and revenue visibility through 2027. Long-term contracts have effectively sold out nearline capacity until 2027, with recent quarterly results showing 44% year-over-year revenue growth and record free cash flow. The target price is set at $968, reflecting strong margin forecasts and a shift towards AI and cloud technology.