Shares of Seagate Technology <\/strong>(NASDAQ: STX)<\/span> leaped on Wednesday after the hard drive maker reported sizzling sales and profit growth.<\/p>\n Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/span><\/em><\/p>\n Seagate’s revenue jumped 44% year over year to $3.1 billion in its fiscal third quarter, which ended on April 3.<\/p>\n The rapid build-out of artificial intelligence (AI) infrastructure is creating an urgent need for effective data storage solutions. With demand for its high-capacity hard drives outpacing supply, Seagate has been able to raise prices. That’s helped to drive its profit margins sharply higher.<\/p>\n Seagate’s adjusted gross margin improved by more than 10 percentage points to 47%, while its operating margin leaped 14 percentage points to 37.5%.<\/p>\n All told, Seagate’s adjusted net income soared 129% to $934 million, or $4.10 per share.<\/p>\n The data storage leader also generated $953 million in free cash flow, which enabled Seagate to pay off $641 million in debt.<\/p>\n Seagate expects revenue of roughly $3.45 billion and adjusted earnings per share of $5.00 in its fiscal fourth quarter. Both figures were well above Wall Street’s estimates.<\/p>\n “We believe Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand,” CEO Dave Mosley said.<\/p>\n Before you buy stock in Seagate Technology Plc, consider this:<\/p>\n The Motley Fool Stock Advisor<\/em> analyst team just identified what they believe are the\u00a010 best stocks<\/strong> for investors to buy now\u2026 and Seagate Technology Plc wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $497,606<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,306,846<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s<\/em> total average return is 985% \u2014 a market-crushing outperformance compared to 200% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor<\/em>, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n<\/div>\n<\/div>
Business is booming <\/h2>\n
Management sees more AI-driven gains ahead <\/h2>\n
Should you buy stock in Seagate Technology Plc right now? <\/h2>\n