Meet the Artificial Intelligence (AI) Infrastructure Stock Crushing Micron Technology in 2026. Its Red-Hot Earnings Growth Could Send It Even Higher

Seagate Technology has experienced outstanding gains, up 164% in 2026, driven by a skyrocketing demand for memory chips used in artificial intelligence data centers.
Its financial performance has been exceptional, including a 44% year-over-year increase in revenue to $3.11 billion and an earnings surge of 116% due to an improvement in operating margin.
The AI data center market has become Seagate’s largest revenue consumer, accounting for 80% of its last quarter’s revenue, and sustained growth is expected with long-term supply agreements in place.
Seagate’s earnings are projected to more than double in the current quarter to $5 per share, surpassing earlier expectations due to favorable demand-supply dynamics.
Despite a high-earning multiple compared to the Nasdaq 100, Seagate’s valuation is considered justified by its market-beating earnings growth, with a PEG ratio indicating potential undervaluation.
Analysts project Seagate’s earnings to continue this upward trend over the next five years, suggesting that substantial stock gains are possible, with an estimated potential gain of 77% from current levels.