Seagate shares rise 2% after Q3 beats expectations with strong AI storage and HAMR tech growth

Seagate reported fiscal Q3 earnings of $4.10 per share, surpassing the $3.51 estimate, and revenue of $3.1 billion, up 44% year-over-year. The company highlighted strong data center demand and launched new AI Storage Suite and Mozaic 4 HAMR drives with up to 44TB capacity. Analysts responded by raising price targets, with Cantor Fitzgerald boosting its target to $1,000. Management forecasts Q4 revenue of $3.45 billion and $5 EPS, expecting gross margins above 50%, a company first. Despite strong fundamentals, the stock trades at a high P/E near 74 and some insiders have sold shares recently.