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Home/News Feed/Seagate stock outperforms peers despite high valuation, driven by strong pricing power in data center segment.
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Seagate stock outperforms peers despite high valuation, driven by strong pricing power in data center segment.

Analyst Insights
30 Apr 2026
Seeking Alpha
View Source
Bullish
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Seagate Technology's stock has outperformed its memory sector peers, despite concerns about its high valuation at 43 times forward earnings. The company's pricing power contributed significantly to a $276 million sequential revenue increase in its data center segment, boosting its gross margin to 46.5%. While nearline capacity is nearly fully allocated through 2027, the main concern now is how long the supply-demand imbalance in HDDs can sustain this pricing power. The author, previously cautious, now owns Seagate shares, shifting focus from valuation to market dynamics and supply constraints.

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