We have recently released a list of
10 Underrated Tech Stocks Worth Buying Today
In this piece, we will examine how Seagate Technology Holdings plc (NASDAQ:STX) measures up against other under-the-radar tech stocks worth considering for investment right now.
Following significant macroeconomic hurdles, the information technology industry entered 2025 rejuvenated. This sector appears poised for revival after experiencing turbulence marked by elevated inflation, climbing interest rates, and global uncertainties. According to a survey conducted by Deloitte, 62% of tech leaders believe the sector will be either “robust” or “extremely robust” this year. It’s projected that overall IT expenditures globally will rise by 9.3%, largely fueled by substantial increases in software development and data center enhancements. Analysts predict that as businesses transition artificial intelligence programs from trial phases into comprehensive implementations, areas such as generative AI, cyber security, and cloud computing will remain key catalysts for expansion.
In 2024, the pace of job cuts decreased considerably, suggesting increasing stability. However, fresh challenges have emerged, particularly due to geopolitical strains and regulatory hurdles. The global economy is now experiencing the impacts of President Trump’s extensive tariff strategies, encompassing extra fees on key technology-producing nations such as Taiwan, India, and Vietnam ranging between 26% and 49%. Despite semiconductor imports, crucial for advancing artificial intelligence, being currently excluded from these tariffs, technology firms depending on worldwide supply networks confront heightened uncertainties because of this fluctuating trade environment.
In the meantime, generative AI is turning out to be a double-edged sword. Although it is expected to account for 21% of the U.S. GDP by 2030, according to reports from the
World Economic Forum,
There are increasing worries regarding how this technology might replace millions of jobs, especially those in administrative positions. As the
World Economic Forum
The key point is that the answer does not lie in stopping AI development but in promoting “Genuine Intelligence.” This strategy focuses on combining human critical thinking with AI functionalities to guarantee broad-based economic progress.
Moreover, cybersecurity has emerged as a critical focus area within strategic planning. With the growing adoption of AI technologies, the potential entry points for cyber attackers also expand. It is projected that by 2028, worldwide expenditure on cybersecurity measures will surpass $200 billion, reflecting an increased emphasis among companies to strengthen protective measures. Nevertheless, merely 24% of current generative AI initiatives are believed to have adequate security safeguards, highlighting trust issues remain a substantial barrier to broader AI implementation.
To summarize, even though 2025 looks promising for the IT sector because of progress in areas like generative AI, cloud migration, and strong investments in technology, organizations must navigate an intricate network of ethical, geopolitical, and regulatory challenges. Companies that thrive will find harmony among bold technical innovations, prudent risk assessment, diversified supply chains, and a commitment to maintaining trust among stakeholders and customers.
Amidst this ever-evolving landscape, consider these 10 Underrated Technology Stocks to Purchase Today. These stocks have the potential not just to take advantage of future prospects but could also offer significant gains for those looking past the typical large-market leaders.
Methodology
To identify under-the-radar technology stocks, we began by searching for businesses having a market cap exceeding $5 billion, focusing primarily on well-established, sizable corporations. From this group, we selected those whose price-to-earnings (P/E) ratios were below 15, employing the P/E metric as an established gauge to pinpoint potentially undervalued options driven by solid earnings performance. Next, we assessed these companies through the lens of recent hedge-fund interest trends, leveraging insights provided in Insider Monkey’s Q4 2024 analysis. Ultimately, we compiled a roster featuring the top ten firms with minimal presence among hedge funds’ investment portfolios, thereby compiling our list titled “Overlooked Tech Stocks Worth Considering.”
Why do we focus on the stocks that hedge funds amass? It’s straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to surpass the market performance. Each quarter, our monthly bulletin chooses 14 small-cap and large-cap equities, achieving returns of 373.4% since May 2014, which exceeds its benchmark by 218 percentage points.
see more details here
).
A tech setting up a network-connected storage device.
Seagate Technology Holdings plc (NASDAQ:
STX
)
P/E Ratio: 9.56
Hedge Fund Holders: 11
Seagate Technology Holdings plc (NASDAQ: STX), established in 1978 and headquartered in Singapore, stands as a world leader in data storage technologies. The company provides an array of products including hard disk drives, solid-state drives, and storage systems tailored for use across various sectors such as the cloud, edge computing, and enterprise-level businesses globally. As a pivotal figure in enabling digital evolution, Seagate delivers expansive storage infrastructures designed to cope with the massive surge in data experienced today.
Seagate Technology Holdings plc (NASDAQ:STX) concluded calendar year 2024 with strong momentum, increasing its revenues.
7%
In sequence, Seagate posted non-GAAP earnings per share exceeding $2 for the first time in three years. The company saw nearline product revenues almost double compared to the previous year, driven mainly by robust demand, notably from cloud service providers. Growth continues to be propelled by mass-capacity products, with nearline shipments rising 9% sequentially to reach 140 exabytes. For the December quarter, total revenue stood at $2.33 billion. Non-GAAP gross margins improved by 220 basis points to hit 35.5%, marking seven successive quarters of sequential gains.
Seagate Technology Holdings plc (NASDAQ:STX) is seeing growth due to its Mozaic HAMR-based platform, offering leading-edge storage capacities up to 36 terabytes. Several cloud and hyperscale customers have already approved these drives, setting the stage for significant increases in shipment volumes toward late 2025. The company’s leadership predicts that generative artificial intelligence will drive demand for large-capacity storage over the long term, anticipating that AI-produced data could grow 170-fold from 2024 to 2028.
Seagate Technology Holdings plc (NASDAQ: STX) completed the strategic purchase of Intevac for approximately $96 million on March 31, 2025, enhancing its capacity for producing thin-film materials. Additionally, the firm maintained its commitment to financial prudence, achieving $150 million in free cash flow and reducing its debt by $479 million at the start of January, ensuring minimal liabilities up till late fiscal year 2027.
Even though Seagate Technology Holdings plc (NASDAQ:STX) faced some short-term supply issues during the March quarter, the company remains strong due to high customer interest and a promising technological path forward. Considering its essential role in supporting AI-powered large-scale storage requirements, Seagate seems like an underappreciated tech stock likely to thrive as data growth expands further.
Overall, STX
ranks 1st
on our list of overlooked tech stocks to buy now. While we acknowledge the potential of STX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STX but that trades at less than 5 times its earnings, check out our report about this
cheapest AI stock
.
READ NEXT:
20 Top AI Stocks You Should Consider Purchasing Today
and
30 Top Stocks to Purchase Currently as Recommended by Billionaires
.
Disclosure: There are no conflicts of interest. This article was initially published here.
Insider Monkey
.