AI insights: Is Seagate Technology (STX) the perfect AI play?
What attain OpenAI, Google, and Anthropic have in authentic? They all want arduous drives.
Accomplish AI chatbots like ChatGPT procure caught up within the AI hype?
That’s the design in which it feels after ChatGPT picked an AI-focused stock for the third time in four weeks for the AI Insights series.
This time around ChatGPT centered facts storage big Seagate Know-how (STX).
No matter the hype surrounding AI (and seemingly menace of a bubble), Seagate might additionally accumulated be the ideal play. It’s the dilapidated adage of promoting picks and shovels when there’s a gold speed.
AI corporations (and tech corporations at gorgeous) want storage alternate choices, and Seagate is section of a duopoly (the different being Western Digital) that’s in truth cornered the market for storage.
Let’s dive in.
ChatGPT stock decide of the week: Seagate Know-how (STX)
Right here’s precisely what ChatGPT needed to converse this week:
A successfully timed stock plan nowadays is Seagate Know-how (STX): shares are surging on tough results and sector momentum, positioning it as a beneficiary of AI-driven storage quiz and an bettering earnings outlook.
Seagate Know-how (STX) at a peep
Our rob
We’ve performed a vital amount of reporting on Seagate over the years, and right here’s Senior News Author Dave Kovaleski with the latest:
Seagate Know-how is but any other regarded as one of our favorite stocks. Seagate makes high-ability arduous disk drives and is a toddle-setter in facts storage, in particular for AI facts centers. No longer entirely is it on the heart of the AI economy, it is a ways a dominant participant in this house, section of a duopoly on the side of Western Digital (WDC). Seagate and Western Digital assist an eye on about 80% of this rising market, with the market part ruin up gorgeous considerable down the center.
That would cloak why its earnings had been surging and its stock label has been skyrocketing. Seagate stock is up a ridiculous 219% YTD and 171% proper thru the last 12 months. It has averaged a 39% annual return proper thru the last 5 years and 21% annual return proper thru the last 10 years.
We’ve written about it twice within the past two months. In a memoir in October, we called it “regarded as one of the most excellent AI stocks” and an “extremely vivid possibility” thanks to high earnings, commerce dwelling, and cheap valuation at 25 times forward earnings. In a September myth, we illustrious how analysts are bullish on the stock and urged that it has “extra room to scamper” with its wide moat in a booming commerce.
What other specialists are pronouncing about Seagate
Seagate is on the second ranked as a moderate purchase. No matter the tough endorsement, it basically has a 12-month label goal of $268, which is down a miniature from the keep it is a ways ravishing now.
As you’d inquire of, most analysts deem Seagate is successfully-positioned to back from the continued AI speak. Each and every Seagate and its vital rival, Western Digital, provide facts storage alternate choices to a wide vary of AI corporations.
Clearly when discussing Seagate, you’d be remiss to now not acknowledge its chief rival within the storage house: Western Digital.
Western Digital is basically a compelling different if you’re seeking an different to Seagate because it’s basically conducted greater proper thru the last six months (though they are almost about the an identical YTD). Western Digital would perhaps be a a miniature greater worth as its label-to-earnings ratio is ravishing 22.
How did last week’s decide fracture?
It hasn’t been an auspicious originate for Comcast (CMCSA) within the AI Insights portfolio. Chart from TradingView.
Last week ChatGPT urged seeking low on multimedia megacorp Comcast (CMCSA), and the stock promptly dropped even lower.
It looks the acquisition was on the right frightful time, because it overlooked a vital dip. On the intense aspect, the stock has since recovered a whole lot of the tumble and is showing indicators of existence because it traits upwards.
The general stock portfolio remains to be driven by the week #1 decide of AI breakout Micron Know-how, which has risen an fabulous 20% proper thru the last four weeks. It ravishing goes to announce how tough AI-connected corporations are performing ravishing now.
Right here’s a peep on the keep the AI Insights portfolio stands after four weeks:
AI insights portfolio
- Total invested: $300.
- Contemporary market worth: $320.89.
- Unrealized gains: 5.17%.
And right here’s how the AI Insights compares to our assist an eye on portfolio, which is comprised entirely of the Main edge Total Stock Market Index Fund with purchases made on the right connected time-frame.
Celebrated portfolio (100% VTI)
- Total invested: $300.
- Contemporary market worth: $301.68.
- Unrealized gains: 0.56%.
