Seagate Technology Holdings Plc (STX): Top Data Center Stock Pick Among Billionaires

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Investors are keeping an eye on Seagate Technology Holdings Plc (NASDAQ:STX) to see how it compares to other top data center stocks preferred by billionaires. The increasing significance of data centers is evident as they form the backbone of the digital economy, handling massive amounts of data that power various industries globally. A recent report by McKinsey & Company forecasts dramatic growth in the global data center market by 2030, with potential challenges arising due to an insufficient capacity buildout.

Earlier this year, the announcement of Project Stargate stirred excitement in the investment community regarding data center infrastructure’s future. However, discussions surrounding the potential repeal of the CHIPS Act have caused some uncertainty in the market. This legislation was created to enhance U.S. semiconductor manufacturing, and its uncertain fate has led to concerns among investors.

In a PwC report from February 2025, the strategic importance of expanding data center infrastructure for geopolitical stability was emphasized. Companies are increasingly diversifying their infrastructure to mitigate risks associated with high-risk regions. Geopolitical tensions and trade restrictions are highlighting vulnerabilities in global supply chains, prompting companies and nations to reassess their approaches.

Recent interviews have shed light on the ongoing surge in AI-driven infrastructure investments within data centers. Charlie Sanchez, from Black & Veatch, highlighted how AI has the potential to optimize supply chains and drive energy efficiency. This, in turn, is influencing the development of next-generation data centers to cater to evolving demands and technological advancements.

Seagate Technology Holdings Plc (NASDAQ:STX) is performing well in the industry, particularly in data storage solutions, catering to various segments from personal to enterprise needs. During the company’s Q2 2025 earnings call, they discussed the vital role of HDDs in supporting data storage for GenAI applications. Seagate has seen revenue growth, resolution of supply constraints, and potential strengthening due to the Intevac acquisition.

While Seagate ranks 13th on the list of preferred data center stocks, the focus is shifting towards AI stocks for higher returns in a shorter timeframe. The investing landscape continues to evolve, emphasizing the need for strategic decision-making amidst market uncertainties and technological advancements.