CNBC’s Jim Cramer said investors should keep an eye on Seagate Technology as a barometer for whether AI infrastructure trading could regain momentum on Wednesday. “What’s the key to this market? It’s Seagate,” Cramer said on “Squawk on the Street” just before the opening bell rang on Wall Street. He described the storage provider’s earnings Tuesday night as a “picture perfect quarter.” Therefore, in after-hours trading, Seagate’s stock price soared after three sessions, falling 18%. The stock continued to rise significantly in the morning session. “If this company can withstand last night’s rally, you’re going to see people say, ‘I’m not that worried considering[SK Hynix],'” Kramer said, adding, “The orders have been amazing and the forecasts have been great.” Kramer said Seagate’s performance stands out because it shows demand for AI-related storage remains strong despite growing skepticism surrounding the sector, unlike memory maker SK Hynix’s chaotic quarter and commentary. He said if investors continue to reward stocks after such a strong quarter, it could signal that the recent selloff in AI infrastructure stocks is over. STX YTD Mountain Seagate Technology YTD This is not an easy test to pass. After Seagate and other scarce memory companies have gone parabolic this year, investors who missed the chance to sell near their peaks often use the pullback as an exit opportunity. This dynamic could make it difficult for Seagate to sustain post-earnings gains, he suggested. But shortly after the move, Seagate stock tested Tuesday’s closing price. The stock was still up 2% in late morning trading, while the tech-heavy Nasdaq was down more than 1%. But a rise is a rise, especially in a down market. Seagate stock continued to be in a difficult situation. While Seagate is still up 175% year-to-date, it is down more than 30% from its June 18 intraday high of $1,145 just about six weeks ago.
