We recently released a compilation of 10 Underrated Tech Stocks Worth Investing in 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 commenced 2025 with renewed energy. This sector appears poised for revival post an era marked by volatility due to factors such as elevated inflation levels, climbing interest rates, and global uncertainties. According to statistics gathered by Deloitte from tech leaders, sixty-two percent foresee this field being either "robust" or "extremely robust" throughout 2025. It’s projected that overall expenditures within the international IT domain could rise by approximately 9.3%, primarily fueled by substantial increases—reaching into double digits—in areas like software development and data centers. With businesses transitioning their artificial intelligence strategies from experimental stages towards comprehensive implementation across all operations, experts predict continued strong performance indicators centered around advancements in generative AI technologies, enhanced cybersecurity measures, and expanded utilization of cloud-based solutions.
In 2024, the pace of job cuts slowed down considerably, suggesting increasing economic steadiness. 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 broadened tariff strategies, encompassing extra fees on key technology-producing nations such as Taiwan, India, and Vietnam, ranging between 26% and 49%. While semiconductor imports crucial for advancing artificial intelligence technologies have received temporary exemptions, tech firms dependent on cross-border supply networks confront heightened uncertainties because of this fluctuating trade landscape.
Meanwhile, generative AI is proving to be a double-edged sword. While it is projected to contribute 21% to U.S. GDP by 2030, as reported by 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 highlights, the solution lies not in halting AI innovation but fostering “Authentic Intelligence”—an approach emphasizing the collaboration of human critical thinking with AI’s capabilities to ensure inclusive economic growth.
Additionally, cybersecurity has become a significant priority on the strategic agenda. As the use of AI increases, so does the attack surface available to hackers. By 2028, it’s expected that global spending on cybersecurity will exceed $200 billion, as businesses emphasize bolstering their defenses. However, only 24% of existing gen AI projects are thought to be sufficiently secure, indicating that trust is still a major obstacle to the widespread use of AI.
To sum up, even though 2025 looks promising for the IT sector thanks to progress in areas like generative AI, cloud migration, and substantial IT investments, enterprises must navigate an intricate maze of ethical, geopolitical, and legal challenges. Companies that succeed will find a equilibrium among bold technological advancement, prudent risk assessment, diversified supplier networks, and maintaining trust amongst stakeholders and customers.
Amidst this ever-evolving landscape, we'll examine 10 Underrated Technology Stocks to Consider Today. These stocks have the potential not just to take advantage of emerging prospects but could also offer significant gains for those looking past the typical large-market leaders.
Methodology
To find overlooked tech stocks, we started by looking for companies with a market capitalization greater than $5 billion, ensuring a concentration on financially strong, large-cap enterprises. We chose stocks from this category that had a price-to-earnings (P/E) ratio of less than 15, using the P/E ratio as a conventional valuation indicator to highlight relatively affordable earnings-driven stocks. We then evaluated these firms based on hedge fund sentiment, utilizing data from Insider Monkey’s fourth quarter 2024 report. Finally, we chose the ten companies with the least number of hedge fund investors to represent our list of Overlooked Tech Stocks to Buy Now.
Why do we focus on the stocks that hedge funds accumulate? 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 stocks, achieving returns of 373.4% since May 2014, which significantly outperforms its benchmark by 218 percentage points. see more details here ).
A tech setting up a NAS 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 cloud services, edge computing, and various business sectors across the globe. By delivering expansive storage infrastructures, Seagate plays a pivotal role in driving digital transformations amid the current surge in data volume.
Seagate Technology Holdings plc (NASDAQ: STX) concluded calendar year 2024 with strong momentum, increasing its revenues notably. 7% In sequence, Seagate posted non-GAAP earnings per share exceeding $2 for the first time in three years. The company's nearline product revenues almost doubled compared to the previous year, largely driven by robust demand, notably from cloud service providers. Products focused on mass storage continued to boost expansion, with nearline shipments climbing 9% sequentially to reach 140 exabytes. For the December quarter, total revenue stood at $2.33 billion, marking an improvement in non-GAAP gross margins by 220 basis points to 35.5%. This signifies the seventh successive quarter where margins have increased progressively.
Seagate Technology Holdings plc (NASDAQ:STX) is seeing growth due to its Mozaic HAMR-based technology, offering leading-edge capacities up to 36 terabytes. Several cloud and large-scale customers have approved these drives, setting the stage for significant increases in volumes towards the end of 2025. The company expects that over time, demand will be driven by GenAI applications, as AI-produced data is projected to surge 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 ability to produce thin films. In parallel, the firm maintained its emphasis on financial prudence, producing $150 million in free cash flow and paying off $479 million in debt at the start of January, with no major liabilities anticipated until near the end of fiscal year 2027.
Even though Seagate Technology Holdings plc (NASDAQ:STX) faced some short-term supply challenges during the March quarter, the company remains strongly positioned due to high customer demand and a promising technological development path. As a key player in meeting the significant storage requirements driven by artificial intelligence, Seagate seems like an underappreciated technology stock likely to thrive as data continues to expand at greater scales.
Overall, STX ranks 1st Among the tech stocks often ignored, we've compiled a list of compelling picks. Although STX shows significant potential, we're more confident in the prospects offered by specific AI stocks, which we believe have a stronger likelihood of generating superior returns over a brief period. One particular AI stock has seen growth year-to-date in 2025, whereas many well-known AI equities have declined by approximately 25%. For investors seeking an AI stock with better upside compared to STX yet trading below five times its earnings, refer to our detailed analysis provided in our latest report. cheapest AI stock .
READ NEXT: 20 Top AI Stocks to Invest In Currently and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .
Disclosure: There are none to declare. This article was initially published here. Insider Monkey .
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