So Seagate Technology (STX) just got invited to join the Nasdaq 100 – basically the VIP section of tech stocks. And honestly? It’s about time someone noticed this absolute unit of a stock that’s been quietly crushing it all year.
Let’s talk numbers for a hot second: STX is up 233% in 2025. That’s not a typo. While everyone’s been obsessing over AI darlings like Nvidia (which, don’t get me wrong, is still crushing), Seagate has been the quiet kid in the back of the class who suddenly shows up with a Tesla.
Why Everyone’s Suddenly Paying Attention
Here’s the thing about AI that nobody talks about at dinner parties: all those fancy ChatGPT conversations and image generators? They create absolutely massive amounts of data. Like, stupidly massive. And that data has to live somewhere.
Enter Seagate, the company that makes hard drives – you know, those spinning disk things your dad still uses. Turns out, when you need to store petabytes of AI training data without going bankrupt, good old-fashioned hard drives are still the MVP. SSDs are fast and sexy, but HDDs are cheap and reliable – kind of like choosing between a sports car and a pickup truck for moving day.
Amazon, Microsoft, and Google are basically throwing money at data center infrastructure right now, and Seagate’s been there with a big smile and an even bigger invoice. Revenue’s up over 30% recently, and margins are looking healthier than a CrossFit instructor’s Instagram.
The Nasdaq 100 Bump
Getting added to the Nasdaq 100 on December 22nd isn’t just a participation trophy – it’s like getting invited to sit with the popular kids. Index funds that track the Nasdaq 100 (looking at you, QQQ) will have to buy STX shares whether they want to or not. It’s forced buying, which is the best kind of buying if you’re already holding the stock.
But Wait, Is This Party Already Over?
Fair question. A 233% run-up would make anyone nervous about buying at the top. But here’s the kicker: STX is trading at about 19x forward earnings with a PEG ratio of 0.73. In normal human terms, that means it’s still reasonably priced for a company growing this fast.
The AI data explosion isn’t slowing down anytime soon – if anything, it’s accelerating. Every new AI model needs more storage, and Seagate’s sitting pretty as one of the few companies that can actually deliver at scale.
The Bottom Line
Is STX a buy? Look, I’m not your financial advisor (thank god, because I’d probably tell you to invest in Pokemon cards), but the fundamentals are solid. The AI storage boom is real, the Nasdaq inclusion should provide some nice tailwinds, and the valuation isn’t completely bonkers yet.
Sometimes the best investments aren’t the flashiest ones. While everyone’s fighting over the latest AI chip stock, Seagate’s been quietly building the infrastructure that makes it all possible. That’s not sexy, but it pays the bills.