This AI Memory Stock Soars 600% - Could Be the Next NVIDIA

Demand for NVIDIA Corporation’s NVDA state-of-the-art chips has exploded in recent years, pushing the company’s market capitalization over $4 trillion and making it the most valuable company ever.  Despite this astounding growth, NVIDIA’s shares experienced periods of volatility as investors questioned whether artificial intelligence (AI)-related spending could continue to grow fast enough to justify NVIDIA’s mammoth size. The stringent China-related export curbs could further put pressure on NVIDIA’s revenue growth and profit margins. NVIDIA’s shares gained 35.3% over the past year, but one AI memory stock — Seagate Technology Holdings plc STX — delivered stronger returns, skyrocketing 647.9%. Let’s thus take a closer look at what the key catalysts are behind its rally and why its growth trajectory may be far from over –Seagate’s AI-Fueled Growth Engine Is Just Getting Started In the third quarter of fiscal 2026, Seagate generated $3.11 billion in revenues, up 44% from the year-ago period, according to investors.seagate.com. Such rapid growth is uncommon among hardware manufacturers and reflects strong customer demand for Seagate’s high-capacity storage solutions. The main engine of growth is Seagate’s nearline storage business, which provides high-capacity hard drives to data center customers. Importantly, Seagate’s revenue growth shows little sign of slowing down. This is because the company expects fiscal fourth-quarter 2026 revenues to be around $3.45 billion, plus or minus $100 million, indicating sustained growth momentum.  The company also expects non-GAAP diluted earnings per share (EPS) of $5, plus or minus 20 cents, for the fiscal fourth quarter, compared with $4.1 in the fiscal third quarter. Additionally, the company’s strong 47% non-GAAP gross margin in the fiscal third quarter highlights improving profitability, operational leverage and strong pricing power. To top it off, Seagate’s free cash flow reached $953 million during the fiscal third quarter, underscoring the strength of its underlying business and providing sufficient financial strength to fund future growth initiatives. Seagate Is Emerging as a Quiet Winner of the AI Boom Seagate’s accelerating demand for data-center storage, improving margins, and solid cash flows have set the stage for continued growth, which could translate into additional gains in its share price, making it one of the strong contenders that could mirror NVIDIA’s rise. No doubt, Seagate is a cyclical stock, but for now, it is benefiting from the sharp demand surges driven by the AI data storage boom. Seagate’s chair and chief executive officer, Dave Mosley, confirmed that “Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand.”  Reflecting this momentum, the company’s expected earnings growth rate for the current and next year is a solid 84.3% and 85.7%, respectively. The Zacks Consensus Estimate of $14.93 for STX’s EPS is up 51% year over year. Image Source: Zacks Investment ResearchSeagate currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks