Seagate: The Most Overvalued Memory Stock Might Be The Best Pick (Upgrade)

The author, Deep Value Investing, admits to being wrong about their previous Hold rating on Seagate Technology Holdings plc (STX). Despite initial valuation concerns, STX stock has outperformed peers, driven by strong pricing power in its data center segment. While the stock’s valuation remains rich at 43x forward earnings, the author is now concerned about the long-term sustainability of the HDD supply-demand imbalance supporting this pricing power.

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