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Seagate Technology Holdings Plc (NASDAQ:STX) is one of the top stock giants that were suddenly on fire in April. Morgan Stanley lifted the price target on Seagate Technology Holdings Plc (NASDAQ:STX) to $767 from $582 on April 29, reaffirming an Overweight rating on the shares. The firm told investors in a research note that the emerging AI applications are continually accelerating hard disk drive demand, which is supporting an even stronger revenue, margin, free cash flow, and capital return outlook. These trends have reinforced Seagate Technology Holdings Plc (NASDAQ:STX) as a “Top Pick”, according to Morgan Stanley.

Seagate Technology Holdings Plc (NASDAQ:STX) also received a rating update from Wedbush the same day. The firm lifted the price target on the stock to $825 from $700, and maintained an Outperform rating on the shares. It told investors that the company shook the recent pattern of delivering earnings outperformance, characterized by 100 bps-200 bps of revenue and gross margin upside, followed by a guide for a few hundred bps of revenue growth and 100 bps-200 bps of gross margin expansion. The firm added that Seagate Technology Holdings Plc (NASDAQ:STX) instead reported revenue growth of close to 10% and gross margin growth of nearly 500 bps, with guidance implying a similar expected result in Q4/Q2.

Seagate Technology Holdings Plc (NASDAQ:STX) is a holding company that develops, produces, and distributes data storage products and electronic data storage solutions. Its products include solid state drives, serial advanced technology attachment controllers, hard disk drives, solid state hybrid drives, peripheral component interconnect express cards, storage subsystems, and computing solutions.

While we acknowledge the potential of STX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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