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Best dining credit cards (August 2026)

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Best dining credit cards (August 2026)


How to find the best restaurant credit card

If you’re searching for a dining rewards credit card, there are a few things you’ll want to consider:

  • Type of rewards: You can find competitive restaurant rewards rates from cards that earn cash-back rewards, points, or miles. Before you commit to a new card, look at the rewards redemption options. If you don’t travel often and prefer simple redemptions, cash back is probably much more useful for you. But if you’re looking for ways to save on travel purchases or you’re already a member of a specific rewards program, a points or miles rewards card could bring you much more value.

  • Other rewards categories: Dining out is probably not your only regular expense — just like restaurant spending isn’t the only way you can earn rewards with a credit card. Take your potential new card’s other rewards categories into account, too. Some may offer comparable rewards on travel, while others might prioritize additional everyday categories like groceries or gas. You can also compare those added rewards categories to any cards you may already have in your wallet, so you don’t lose any potential value with overlapping rewards.

  • Annual fee: The higher the annual fee your card charges, the more likely it is to offer higher rewards rates — including on dining purchases. Make sure you do the math to decide whether the improved rewards you’ll earn on your spending are worth the annual fee, compared to a no-annual-fee card that may offer a slightly lower return at restaurants.

  • Other benefits: Additional benefits, from partner discounts to annual credits and complimentary access, can significantly increase your card’s annual value. Don’t forget to consider how these other perks fit into your spending habits.

  • Credit score: Many top rewards credit cards require good credit to qualify. If you’re not sure of your chances of approval, you may want to check if you’re pre-approved for any dining credit card offers. Otherwise, consider a card you can qualify for that will help you improve your score — some credit-building cards also offer rewards.

Credit cards offering the highest rewards on dining out

Among the dozens of credit cards we compared, the highest rewards rate you can find for restaurants today (without spending caps or other restrictions) is around 4% cash back or 4x points. The cards we like best with a similarly high rate include:

  • American Express Gold Card

  • U.S. Bank Altitude Go Visa Signature

  • Capital One Savor Cash Rewards

For even higher rewards rates (typically 5% back or more), you’ll take on some added restrictions. For example, some credit cards with rotating quarterly categories or with choice rewards categories offer 5% on dining purchases, but only up to a certain amount each month or each billing cycle. There are also co-branded travel cards that offer 5x rewards or higher on dining spending, but you’ll be limited to redeeming them within the brand’s loyalty program.

Is a restaurant rewards credit card worth it?

Choosing a credit card specifically for its dining rewards is only worth it if a large portion of your monthly budget goes toward dining out.

Say you live alone and don’t cook often. You typically grab lunch near your office and either make dinner plans or pick up something on your way home most days of the week. Maximizing that frequent restaurant spending could save you hundreds of dollars each year on what’s likely already one of your largest expenses.

On the other hand, maybe you have a family and work from home. Weekly lunches and dinners typically revolve around Sunday grocery hauls, quick weeknight meals, leftovers, and meal prep. In this scenario, you’re more likely to eat out maybe only once or twice per week. While you can still save money with restaurant rewards, you may be even better off prioritizing a grocery rewards credit card.

It’s also important not to use potential credit card rewards as an excuse to spend more than you can afford. Just like with travel rewards cards, look for ways to save on what you’re already spending, rather than an aspirational version of your perfect budget.

In other words, if you’re not already dining out multiple times per week, don’t start adding hundreds of dollars in restaurant spending to your monthly budget just to earn 3% – 4% back. Not only will you spend more money than you otherwise would, but you could also risk taking on high-interest debt if you’re unable to pay down your total balance each month.

Frequently asked questions (FAQs) about credit cards for restaurants

How do dining rewards credit cards work?

Dining rewards cards work like any other credit card. You can use the card to make any purchase where it’s accepted, and you’ll earn rewards in eligible categories.

Each month, you can pay down your card balance (made up of your previous purchases) in full to avoid accruing interest. If you don’t pay in full, you’ll take on interest charges at your card’s assigned variable APR.

Should you use credit cards at restaurants?

Credit cards are a great way to pay at a restaurant if you want to earn rewards. If you’re at a restaurant in another country, a card with no foreign transaction fees can help you save on the cost.

There are times when you may not be able to pay with a card. Some restaurants only offer cash payment options, for example, while others may charge an extra fee when you use a credit card to pay.

Where can I earn credit card rewards on dining?

If you have a credit card with rewards on dining, you’ll likely earn rewards at most types of restaurants, from sit-down meals to fast food. Rewards can differ for takeout or delivery. Check with your issuer or your card’s rewards program agreement for the full details on whether these types of restaurant purchases count toward your dining rewards.

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.



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Bank of America sends message on Capital One stock

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Bank of America sends message on Capital One stock


Capital One Financial has spent more than a year integrating Discover while investors watch whether the massive acquisition can translate into faster growth and stronger returns.

The latest monthly data gave Wall Street a mixed picture. Capital One (COF) posted healthy credit trends in July, but growth in its domestic card portfolio slowed from the prior month.

Bank of America is still sticking with the stock.

In a note given to TheStreet, BofA analyst Mihir Bhatia maintained a Buy rating and a $253 price objective on Capital One, representing 11.3% upside from the $227.34 share price used in the report.

Bhatia said July’s operating metrics remained healthy overall, pointing to solid credit performance even as card balances grew at a slower pace.

Capital One card growth slows in July

Capital One ended July with $258.9 billion in domestic credit card loans, according to a filing with the Securities and Exchange Commission. The portfolio’s annualized net charge-off rate was 4.12%, while the 30-day-plus performing delinquency rate came in at 3.48%.

BofA said domestic card loans were up 1.92% from a year earlier, slowing from 2.58% growth in June. Card balances have grown at around 2% for roughly the past year, according to Bhatia.

The analyst does not expect a meaningful acceleration until headwinds tied to the Discover integration and related borrow-out activity begin to clear. BofA is modeling end-of-period card loans to increase by about 1% sequentially in the third quarter.

That slowdown comes as Capital One continues working through its integration of Discover. The company completed its acquisition in May 2025, adding the Discover, PULSE, and Diners Club International networks to its business.

Capital One CEO Richard Fairbank said in July that the Discover integration was going well, 14 months after the deal closed. The company reported $3 billion in second-quarter net income, while total net revenue increased 4% sequentially to $15.9 billion.

BofA analyst Mihir Bhatia maintained a Buy rating and a $253 price objective on Capital One.Cheng Xin via Getty Images

Credit trends give BofA more confidence

While card growth has cooled, BofA sees credit quality moving in a more encouraging direction.

Capital One’s domestic card net charge-off rate fell 26 basis points month over month in July. BofA noted that the decline was better than the 20-basis-point average decrease historically seen in July between 2013 and 2019.

More Finance

Delinquencies rose 10 basis points during the month, which BofA said was in line with historical seasonality. Bhatia is currently modeling domestic card net charge-offs to fall another 36 basis points sequentially in the third quarter to 4.35%.

Auto lending also provided a brighter growth signal. Capital One reported $90.5 billion in period-end auto loans in July, with a 1.48% net charge-off rate and a 4.39% 30-day-plus delinquency rate.

BofA said auto balances increased 12.05% from a year earlier, accelerating from 11.62% growth in June.

Bank of America sees upside in Capital One stock

The combination leaves BofA willing to look through slower card growth for now.

Bhatia pointed to expected expense synergies, strong capital-return potential, and room for valuation upside as reasons to remain positive on Capital One. The bank’s $253 target is based on a 10.5-times multiple of its 2027 earnings-per-share estimate.

That multiple sits toward the high end of Capital One’s historical range of roughly 7 to 11 times earnings, but BofA believes the premium is justified by expected synergy realization, an optimistic credit outlook, buyback potential and a resilient cardholder base.

There are still risks to the call. BofA said weaker revolving credit growth, a faltering economic recovery, and rising loan losses could pressure earnings and valuation, while cybersecurity and regulatory issues remain additional concerns.

For now, July’s results leave BofA focused on improving credit trends and the potential benefits still ahead from the Discover integration, even as Capital One’s core card growth remains subdued.

Related: Capital One breaks silence on shutting Trump Org. accounts

This story was originally published by TheStreet on Aug 20, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.



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CLARITY Act: Can White House push lift 15 September passage odds from 22%? 

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moneyvests
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CLARITY Act: Can White House push lift 15 September passage odds from 22%? 


The crypto industry is leaving nothing to chance for regulatory clarity for the sector following the recent White House meeting. 

During the Wednesday meeting, President Donald Trump met with crypto and finance CEOs on how to make America the crypto capital of the world. For Coinbase’s Brian Armstrong, the crypto market structure bill, the CLARITY Act, was the “big topic of discussion.”

He added, 

CLARITY Act is coming up for a full Senate floor vote on September 15th. It’s really important that it got scheduled amongst all competing priorities and there was a lot of energy in the room to get it to the finish line.

White House frames CLARITY Act as national security

Similarly, the Ripple CEO echoed a similar message, noting that “crypto isn’t a fringe industry,” citing rising ownership by U.S citizens. 

For his part, Patrick Witt, Executive Director, President Trump Council of Advisors on Digital Assets,  said, 

Now it’s time to pass the CLARITY Act to modernize our capital markets and ensure American financial leadership for decades to come.

CLARITY Act
Source: X

The bill failed to progress during the early August window amid holdouts from Democrats and key Republicans citing ethics and DeFi developers protection provisions. 

Whether the sticky issues will be resolved and consensus built ahead of the mid-September vote remains unclear. 

Despite the uncertainty, Coinbase’s Armstrong is confident of a “strong bipartisan vote.” In fact, he projected that the bill’s passage will trigger the beginning of the next bull market run from October (“Uptober”). 

CLARITY ActCLARITY Act
Source: X

In contrast, the broader market outlook was completely different from Armstrong’s optimism. The passage odds before 2007 stood at 24% on prediction market Polymarket. 

In fact, bettors in Kalshi viewed the bill’s passage chances in 2027 as a coin flip (50/50).

CLARITY ActCLARITY Act
Source: Kalshi

That said, regulators (SEC and CFTC) are already publishing rules for the sector (some of which are contained in the CLARITY Act). 

Earlier this week, the SEC released fundraising guidelines for crypto firms. More rules are expected, meaning the sector can operate even if the CLARITY Act passage falters. 

The only problem is that another anti-crypto administration could reverse such guidelines if they are not codified into law by Congress. 

Interestingly, the industry is pursuing a three-pronged approach to maneuver this potential risk.

First, it’s pushing for the CLARITY Act’s passage by next month. Secondly, it’s opting for regulators’ guidelines as a backup plan if the bill stalls in the midterm.

Finally, the industry is supporting pro-crypto lawmakers to help pass the CLARITY Act again in the next Congress. It’s unclear if these bets will work in the industry’s favor. 

Final Summary

  • Coinbase’s CEO is hopeful the CLARITY Act will get “strong bipartisan support” on September 15th 
  • However, bettors doubted the bill’s progress in 2026 and were 50/50 for its pathway in 2027

 



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Dividend King pays Warren Buffett’s Berkshire $848M each year

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Dividend King pays Warren Buffett's Berkshire $848M each year


Warren Buffett does not talk about Coca-Cola like a typical stock. He talks about it like an old friend that keeps showing up with a check.

Every year, Coca-Cola (KO) sends Buffett’s Berkshire Hathaway a dividend payment large enough to buy a small company outright. And for six decades running, that check has gotten a little bigger each time.

For everyday investors weighing the value of a name like KO stock, the math behind the payment tells a bigger story about why dividends matter, even in a market obsessed with growth stocks. 

As Merrill, the wealth management arm of Bank of America, put it in a recent investor note, “one mistake to avoid is to buy a company’s stock simply because it issues a high dividend.” 

Growth prospects and consistency matter as much as yield, the firm noted, and Coca-Cola offers both.

Coca-Cola earns its Dividend King crown

Coca-Cola has increased its dividend every year since 1963, an unbroken streak of 64 years. 

That makes it a Dividend King, a title reserved for companies with at least 50 straight years of dividend increases. Only a small number of public companies share that distinction.

More Warren Buffett:

The most recent hike came in February, when Coca-Cola’s board raised the quarterly dividend from $0.51 to $0.53 per share. 

It works out to an annualized payout of $2.12 per share, the figure now used to calculate Berkshire’s yearly income from the stock. At current prices, KO stock yields around 2.3%.

Soft drinks, water, and juice are everyday purchases that keep selling across economic cycles. This steady demand funds the payout year after year, according to the company’s own earnings commentary.

Warren Buffett’s Berkshire cashes in on KO stock

Berkshire Hathaway owns 400 million shares of Coca-Cola, according to CNBC, a position Buffett began building in 1988. He has never sold a single share.

At the current annual dividend of $2.12 per share, that stake pays Berkshire roughly $848 million a year. 

Key dividend ratios investors watch on KO stock:

  • Annual dividend: $2.12 per share

  • Dividend yield: Approximately 2.3%

  • Payout ratio: Roughly 75% of FCF

  • Consecutive years of dividend increases: 64, earning Dividend King status

  • 30-year average annual dividend growth rate: Approximately 7.4%

  • Total dividends expense in 2026 (e): About $8.8 billion

According to a Business Insider report, Berkshire spent $1.4 billion to purchase 400 million shares of Coca-Cola. 

An annual dividend payout of $848 million indicates Warren Buffett’s yield-at-cost is more than 60% for the beverage giant.  

The Oracle of Omaha has pointed to Coca-Cola for years as an example of how holding a quality dividend payer through decades of market swings can build extraordinary long-term wealth.

Strong Q2 results support Coca-Cola’s payout

The dividend does not exist in a vacuum. A growing cash flow base funds it, and Coca-Cola’s latest earnings call showed why the payout remains sustainable. 

CFO John Murphy told investors on the company’s second-quarter 2026 earnings call that free cash flow came in at about $6.9 billion. 

Analysts forecast FCF to expand to $12.1 billion in 2026. Comparatively, annual dividend expense is about $9.1 billion, indicating a payout ratio of 75%. 

Related: Coca-Cola absorbs margin hit for expansion in key market

Comparable earnings per share of $0.97 rose 11%, helped by an easier year-ago comparison and momentum from Coca-Cola’s FIFA World Cup marketing campaign.

Murphy also pointed to a net debt leverage ratio of 1.4 times EBITDA, well below the company’s target range of 2 to 2.5 times. “Given the momentum of our business and the strength of our balance sheet, we have increased flexibility and optionality to continue to both reinvest in our business and return capital to shareowners.” 

Coca-Cola also raised its full-year outlook, now expecting organic revenue growth of approximately 5% and comparable earnings per share growth of 9% to 10% for 2026.

Coca-Cola’s free cash flow came in at about $6.9 billion for Q2 2026.Derek White/Getty Images

Wall Street is bullish on this dividend stock

Analysts have taken notice of both the growth and the payout for Coca-Cola stock. 

  • Barclays analyst Lauren Lieberman raised her price target on KO stock to $93 from $91 while maintaining an Overweight rating following the company’s second-quarter results.

  • TD Cowen went further, lifting its target to $100 from $90 and noting that Coca-Cola “remains a top pick” among consumer staples names. 

  • RBC Capital also raised its KO stock price target, to $96 from $87, keeping an Outperform rating after what it called a clean earnings beat.

For Berkshire, the $848 million check is a rounding error against the size of Buffett’s overall portfolio. 

But for everyday investors weighing whether dividend stocks like KO still deserve a spot in a growth-chasing market, Coca-Cola’s streak stretching back six decades, and the cash flow now backing it, are hard to ignore.

Related: Dividend King Coca-Cola is suddenly acting like a growth stock

This story was originally published by TheStreet on Aug 20, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.



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Why Your Website Is Now Your Most Underrated Growth Asset

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Why Your Website Is Now Your Most Underrated Growth Asset


Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways

  • In the AI era, your website is no longer just a digital brochure, and it’s one of your most powerful growth assets.
  • As AI-powered search sends increasingly decision-ready visitors directly to specific pages, businesses need websites that do more than attract traffic.
  • They must build trust, deliver immediate answers, provide seamless user experiences and convert visitors into customers. The advantage isn’t just getting more visitors; it’s making every visitor count.

4.31 percent. That’s the average conversion rate across websites today, according to one industry breakdown of online businesses. Translate that into a construction equipment supplier running ads to 10,000 monthly visitors — fewer than 500 ever become customers. The rest simply leave.

Business leaders chase paid ads, SEO tactics and social campaigns. Few audit the one asset those channels all funnel into: the website. In the AI era, that asset is no longer a static digital brochure. It’s your most scalable growth engine, and most companies are running it at a fraction of its capacity.

The shift: From digital brochure to growth engine

For two decades, websites existed to inform: hours, services, a phone number. That mindset is outdated. Today’s website has to do the work of a salesperson, a support desk and a first impression, simultaneously. It needs to acquire visitors, earn their trust and convert them, often within a single session.

AI has raised what “acceptable” looks like: Visitors expect speed, relevance and answers tailored to them, the same way they’d get from a knowledgeable rep standing in front of them.

Why AI is raising the bar for website performance

AI-powered search sends more qualified traffic than legacy search ever did. Platforms like ChatGPT and Google’s AI Overviews increasingly route decision-ready visitors straight to specific pages, skipping the awareness stage entirely.

That traffic arrives with higher expectations:

  • Instant, specific answers instead of generic marketing copy
  • Frictionless navigation across devices
  • Journeys that feel tailored to the visitor’s exact need

The first three seconds on a page now function like the first 30 seconds of a job interview. Miss it, and no amount of downstream content recovers the visitor.

The real problem: Most websites don’t convert

High traffic does not equal high revenue. A power grid can carry enormous load and still fail if the transformers downstream can’t handle it; websites work the same way.

Most sites lose visitors to a familiar set of failures: confusing or bloated navigation, vague messaging that never states what the business actually does, load times that test visitor patience and calls to action buried beneath decorative content.

Google’s own mobile speed research found that as load time stretches from one to 10 seconds, the probability of a visitor bouncing climbs by 123%. Traffic without infrastructure is just wasted spend.

What makes a high-converting website

Fixing that gap starts with fundamentals, not tricks. Building a truly high-converting website requires a combination of user-centric design, clear messaging and performance optimization working together, not in isolation.

The core ingredients:

  • A value proposition visible without scrolling
  • Navigation a first-time visitor can use without thinking
  • Load times under three seconds on mobile
  • Trust signals: certifications, case studies, real client names
  • Calls to action matched to visitor intent at each stage

Skip any one of these, and the rest lose their effect. A fast site with a confusing menu still bleeds visitors.

The role of UX and design in business growth

Design was once treated as a cosmetic layer applied after the “real” strategy work was done. That thinking no longer holds. Every layout decision affects trust, every friction point affects engagement, and every unclear label affects whether a visitor completes the action a business needs.

Baymard Institute’s research on checkout usability found that fixing solvable design and flow issues alone can lift conversion by more than 35% on large sites. UX stopped being a design department’s concern. It’s now a revenue strategy, reviewed with the same rigor as pricing or lead-gen spend.

AI + websites: The new growth multiplier

Layer AI onto solid foundations, and the multiplier effect becomes obvious. Personalization engines adjust content per visitor segment, recommendation logic surfaces the right service or product, behavioral targeting adapts messaging to where a visitor sits in their journey, and conversational interfaces answer questions instantly, at any hour.

None of this compensates for a broken foundation. AI amplifies what’s already there, for better or worse. A well-built site becomes exponentially more effective; a poorly built one just fails faster and at greater cost.

Website as a 24/7 sales machine

A website never clocks out. It captures leads at 2 a.m., educates a prospect comparing three vendors over a weekend and moves a visitor toward a decision without waiting for a sales rep’s calendar to open up.

Done well, it reduces dependency on headcount-heavy sales teams entirely. That matters most for businesses managing complex, high-consideration purchases: construction equipment, legal services or medical procedures, where buyers research extensively before ever picking up a phone.

What businesses should do now

Leaders serious about growth this year should treat their website like operating infrastructure, not a marketing checkbox.

  • Audit current performance: speed, mobile experience, conversion paths
  • Rewrite messaging until a stranger understands the offer in five seconds
  • Optimize load times and mobile responsiveness before adding new features
  • Align every page with a specific business goal, not generic brand awareness
  • Prepare content and structure for AI-driven discovery, not just traditional search

None of this requires a full rebuild. Most sites gain the most ground from fixing five or six specific failure points, not from starting over.

The Future: Intelligent, adaptive websites

The next generation of websites won’t just display content; they’ll anticipate it. Predictive experiences will adjust in real time to a visitor’s likely intent, industry and stage in the buying process.

Expect fully personalized journeys, AI-driven optimization running continuously in the background, and websites that function less like static real estate and more like a digital sales rep who never sleeps.

Most businesses don’t need more tools. They need a better foundation under the tools they already have. Your website is your first impression, your conversion engine and your primary growth driver, whether or not it’s currently performing that role. In the AI era, the businesses that win won’t just attract attention. They’ll convert it.

Key Takeaways

  • In the AI era, your website is no longer just a digital brochure, and it’s one of your most powerful growth assets.
  • As AI-powered search sends increasingly decision-ready visitors directly to specific pages, businesses need websites that do more than attract traffic.
  • They must build trust, deliver immediate answers, provide seamless user experiences and convert visitors into customers. The advantage isn’t just getting more visitors; it’s making every visitor count.

4.31 percent. That’s the average conversion rate across websites today, according to one industry breakdown of online businesses. Translate that into a construction equipment supplier running ads to 10,000 monthly visitors — fewer than 500 ever become customers. The rest simply leave.

Business leaders chase paid ads, SEO tactics and social campaigns. Few audit the one asset those channels all funnel into: the website. In the AI era, that asset is no longer a static digital brochure. It’s your most scalable growth engine, and most companies are running it at a fraction of its capacity.

The shift: From digital brochure to growth engine

For two decades, websites existed to inform: hours, services, a phone number. That mindset is outdated. Today’s website has to do the work of a salesperson, a support desk and a first impression, simultaneously. It needs to acquire visitors, earn their trust and convert them, often within a single session.



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LINK jumps above $10.60 as Chainlink takes the White House spotlight

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LINK jumps above $10.60 as Chainlink takes the White House spotlight


Chainlink [LINK] is in the spotlight!

A recent White House appearance for the platform’s co-founder and infrastructure updates are keeping the mood up.

But has any of it helped LINK?

Chainlink’s Sergey Nazarov speaks at The White House

At the technology leaders event on August 20, co-founder Sergey Nazarov said recent U.S. regulatory moves are helping stablecoins reach a much wider audience.

Source: YouTube

He referred to the GENIUS Act and the growing use of U.S. government debt in stablecoin reserves as factors that could put dollar-backed digital assets into more hands.

There’s a very real and tangible outcome that’s benefiting the adoption of U.S.-issued assets and the U.S. dollar.

Nazarov also expects tokenized stocks to follow a similar path.

Chainlink already provides for many of these applications, so it has a close view of how quickly adoption is developing.

Nethermind chooses Chainlink

In other developments, Ethereum infrastructure firm Nethermind announced that it is joining Chainlink as a node operator. The company will help secure Chainlink’s CCIP and Data Feeds.

CEO Daniel Celeda described the move as a long-term decision, based on where Nethermind sees on-chain finance heading.

Interestingly, many firms are reconsidering their cross-chain infrastructure; this is after the April exploit involving a LayerZero-powered bridge used by Kelp DAO.

As of yet, a timeline for completing the migration has not been announced.

LINK holds its gains

In light of the recent market surge and its own developments, native token LINK has spiked. On the hourly chart, the token went to above $10.60. Afterwards, it settled into a range near those levels.

chainlink pricechainlink price
Source: TradingView

While the pace remains positive, it has slowed now. The RSI was at around 64, so buyers still have control without the market being excessively stretched. OBV also improved and has since stayed relatively steady.

As it stands, the token is consolidating after its recent jump.

Final Summary

  • Sergey Nazarov’s White House appearance and Nethermind’s Chainlink move have given Chainlink a lot of buzz.
  • LINK climbed above $10.60 before consolidating.

 



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Seagate Has Already Surged 900% in 5 Years. Where Will it be In 2027?

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Seagate Has Already Surged 900% in 5 Years. Where Will it be In 2027?


Quick Read

  • STX’s nearline capacity is nearly fully allocated through 2027, driving a 90% confidence BUY call with a $946 price target.

  • WDC posts similar revenue to STX but carries a lower market cap, while MU operates in DRAM and HBM as a complement, not a competitor.

  • Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Seagate Technology didn’t make the cut. Grab the names FREE today.

Few large-cap tech stocks have moved like Seagate Technology (NASDAQ:STX) over the past five years. The hard drive maker was left for dead in 2021 as investors braced for NAND to eat HDD, yet the AI data explosion flipped the narrative.

Wikimedia Commons

Cloud giants now depend on Seagate’s Mozaic HAMR platform to store the exabytes their AI models generate, and the stock has responded in kind. The question is whether the run has legs into 2027, or whether the easy money has already been made.

Seagate Technology trades at $832.56 after a wild year that included a 431.49% one-year gain and a 980.57% five-year return. Our 24/7 Wall St. price target for Seagate is $946.08 over the next 12 months, implying modest but real upside from here. The recommendation is buy at high confidence, with structural cloud demand and HAMR economics driving the thesis.

STX price target
STX Price Target — 24/7 Wall St.

Momentum Cooled, but Fundamentals Accelerated

STX slipped 5.2% over the past week and sits roughly 27% off its $1,144.18 52-week high.

Yet FY2026 delivered 34.06% revenue growth to $12.20 billion, non-GAAP EPS of $15.58, and record free cash flow of $3.11 billion. Q4 GAAP gross margin hit 52.3%, up from 37.4% a year prior. Management guided Q1 FY27 revenue to $4.1 billion and non-GAAP EPS of $7.30, signaling the ramp is accelerating.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Seagate Technology didn’t make the cut. Grab the names FREE today.

STX earnings explorer
STX Earnings Explorer — 24/7 Wall St.

Why Bulls See a Breakout Ahead

CEO Dave Mosley described Seagate as entering “a period of structural growth” and lifted the annual revenue growth target to “a minimum of 20% over the next few years.” Nearline capacity is “almost fully allocated through calendar 2027,” and the top three cloud providers have nearly doubled their RPO to a staggering $1.1 trillion (the same buildout we mapped across power, cooling, and networking suppliers in a free report here: 7 Stocks Powering the AI Boom).

Mosaic 4 delivers up to 44 terabytes per drive, with Mosaic 5 targeting 50 terabytes by late 2027. A bull scenario points to $1,221, matching Morgan Stanley’s earlier $1,035 target environment.

STX analyst ratings
STX Analyst Ratings — 24/7 Wall St.

What Could Go Wrong

STX carries a beta of 2.102 and a trailing P/E of 71x. Hyperscaler concentration is real: 80% of revenue is data center. Dilution from the 2028 Exchangeable Senior Notes looms, though management retired $1.40 billion in debt across FY26.

A bear case takes shares to $703. The forward P/E of 28x and PEG of 0.569 suggest earnings growth is driving gains, with limited room for multiple expansion.

STX price scenario
STX Price Scenario — 24/7 Wall St.

How Seagate Compares to Western Digital and Micron

Western Digital (NASDAQ:WDC) is the cleanest peer, a pure-play HDD maker post-Sandisk separation. WDC posted FY26 revenue of $12.92 billion and non-GAAP EPS of $10.22, guiding Q1 FY27 to $4.1 billion in revenue and $4 EPS. Its market cap of $166.6 billion sits below Seagate’s $204.8 billion, but Seagate’s HAMR lead and higher EPS run rate justify the premium.

Micron Technology (NASDAQ:MU) offers AI memory context. Its fiscal Q3 revenue of $41.46 billion and Q4 guide of $50 billion put Seagate’s growth in perspective. Micron plays in DRAM and HBM, a different segment from storage, making it a complement rather than a substitute. The shared AI thesis makes Seagate’s Mosaic-driven margin story reasonable.

My Take: Structural Demand Anchors the Thesis

My 24/7 Wall St. price target for Seagate is $946.08, a buy at 90% confidence. The tipping factor is nearline capacity allocated through calendar 2027, which gives the earnings ramp visibility most cyclical stocks lack.

The thesis holds for investors who can stomach a beta above 2 and view pullbacks as entry windows. It weakens if hyperscaler capex signals soften or if HAMR yields disappoint.

These projections assume Seagate executes Mosaic 4 and 5 on schedule. Significant upside or downside could come from a hyperscaler capex reset or a faster-than-expected NAND price crash.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Seagate Technology didn’t make the cut. Grab the names FREE today.

Contact editorial@247wallst.com for any questions or corrections.



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