Stock Market Update

[BRIEFING.COM] The major averages remain mixed.

The information technology sector (+0.2%) has reclaimed its baseline, supported by widening gains across semiconductor names, pushing the PHLX Semiconductor Index 2.1% higher.

Seagate Tech (STX 669.27, +90.24, +15.58%)  is surging to new all-time highs after reporting blowout Q3 (Mar) results last night, as the hard drive and mass-capacity storage provider continues to benefit from the massive storage needs created by cloud and AI workloads. STX delivered a huge EPS beat, while revenue jumped 44.1% year-over-year to $3.11 billion. The Q4 guidance was also notably strong, with EPS of $4.80-5.20 and revenue of $3.35-3.55 billion both well above expectations.

The strength in data center revenue, margins, and guidance all suggest a company firing on all cylinders as cloud and AI workloads continue to drive the need for higher-capacity storage. Importantly, the report also signals that this momentum has room to continue, with nearline capacity almost fully allocated through CY27 and customer discussions already extending into CY28. 4

The results offer an encouraging read-through for peer Western Digital (WDC 431.10, +40.10, +10.26%), which is trading sharply higher in sympathy and is set to report its results tomorrow after the close.