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Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters
- On Tuesday, Seagate Technology reported fiscal fourth-quarter revenue of $3.63 billion, beating estimates as AI-infrastructure storage demand surged. Shares of the Singapore-based company rose over 8% in extended trading.
- Surging demand for high-capacity hard disk drives to support generative AI applications drove the results. Seagate leveraged its heat-assisted magnetic recording technology to increase storage capacity without building costly new manufacturing lines.
- Chief Executive Officer Dave Mosley raised the multi-year revenue growth target to at least 20%, citing structural AI-driven storage demand. First-quarter revenue is expected to reach $4.1 billion, exceeding the $3.75 billion analyst estimate.
- Seagate retired $641 million in debt last quarter, bolstering financial discipline. Adjusted profit reached $5.71 per share, while non-GAAP gross margin expanded to 47% from 36.2% a year earlier.
- Success depends on qualifying HAMR technology with the final two major cloud customers, as investors watch whether current execution can sustain a $170 billion market cap. Shares have more than doubled this year despite recent valuation concerns.
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AI storage boom is keeping Seagate's hard drives spinning
The AI infrastructure boom isn't just eating all the memory – it's also driving demand for storage, giving high-capacity hard drives a new lease of life, according to Seagate. The storage veteran says cloud operators are buying ever more mass-capacity hardware as AI applications generate and retain growing volumes of data. "Datacenter demand now represents approximately 90 percent of our exabyte shipments," chairman and CEO Dave Mosley told anal…
·London, United Kingdom
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Coverage Details
Total News Sources19
Leaning Left2Leaning Right1Center8Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
L 18%
C 73%
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