Seagate Technology's (NASDAQ:STX) stock jumped about 6% premarket on Wednesday after fiscal second quarter results beat estimates, which drew positive reactions from analysts. Benchmark Equity upgraded Seagate's rating to Buy from Hold with a $120 target price.

Barclays analyst Tom O’Malley maintained the stock with an Equal-Weight rating and raised the price target from $95 to $105. Northland Capital Markets analyst Gus Richard reiterated Seagate with an Outperform rating and raised the price target from $144 to $160.

Seagate stock gained on an earnings beat posted Tuesday, following a bullish report from Morgan Stanley analysts.

Seagate announced that they are shipping 36TB HAMR evaluation drives to customers. A study shows AI will drive demand for storage solutions, such as these.

Seagate has launched a hard drive with capacities of up to 36TB, expanding the Mozaic 3+ Platform. Takeaway Points Seagate has launched a hard drive capacity of up to 36TB. Dell Technologies is one of the first customers to adopt Mozaic 3+ and will soon integrate Exos M 32TB into their high-density storage systems.

Seagate is exclusively adopting HAMR technology with its new 36TB Exos M HDD, moving away from CMR and SMR. This results in a 25% reduction in cost per TB, which is critical to maintaining the capacity-to-price ratio that keeps HDDs still relevant in an industry where SSDs offer faster speeds and are increasingly cheaper.