Seagate Technology Holdings plc (STX) experienced strong upward momentum and elevated volatility, driven primarily by a highly optimistic research note from Morgan Stanley and a favorable outlook on the broader data storage industry. Morgan Stanley raised its price target for the stock significantly and reiterated its overweight rating. The research firm highlighted an impending and extended shortage of hard disk drives (HDDs) that could last through at least 2028, driven by the explosive growth of artificial intelligence applications and data center needs.

This projected supply-demand imbalance is heavily benefiting Seagate, as annual demand for high-capacity HDD storage is currently estimated to grow at a rate that far outpaces…