BofA Turns Bullish on Seagate on Sustained Data Center Storage Demand

Bank of America (BofA) analysts have expressed growing optimism toward Seagate Technology Holdings plc (NASDAQ:STX), which is featured on a list of best memory stocks to buy according to analysts. The bullish stance is driven by sustained demand for mass-capacity storage in data centers.

Rating Change

According to a report published by Insider Monkey on April 28, 2026, BofA analysts upgraded their rating on the stock to "Buy" or equivalent, with a new price target not explicitly disclosed. The current positive rating implies an expected upside of 29.72% from levels seen on April 20, 2026.

Analyst Rationale

Analysts believe Seagate benefits from two key trends: first, the accelerating global buildout of data centers, which increases demand for high-capacity storage solutions. Second, Seagate's ability to offer competitive products in the high-capacity hard disk drive (HDD) market, which remains important for archival and long-term storage despite the rise of solid-state drives (SSDs).

Context

This optimism comes amid intense competition in the storage sector, with companies like Western Digital (WDC) and Micron (MU) focusing on innovation. Seagate's stock performance has been volatile in recent months, but analysts believe strong fundamentals support growth.

Conclusion

The BofA rating is a positive signal for the stock, but investors are advised to monitor storage demand trends and competitor performance. This analysis does not constitute a buy or sell recommendation.