Seagate Technology Holdings plc
NasdaqGS-STX
Company Overview
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.
Name
Seagate Technology Holdings plc
CEO
William David Mosley
Website
www.seagate.com
Sector
Technology Hardware, Storage and Peripherals
Year Founded
1978
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Bulls Say
Demand for data center buildouts is only increasing, driven by long-term structural trends such as AI and Internet of Things. This could prolong the current upcycle and make it more durable than previous cycles.
Advancements in higher-capacity HDDs and new technologies like energy-assisted recording should expand Seagate’s gross margins.
The HDD industry will be more disciplined on supply and pricing than in the past, which will reduce the cyclicality of the industry and warrant a higher valuation for Seagate.
Bears Say
The HDD market is commodity-like and cyclical, leaving Seagate vulnerable to market pricing declines that can shrink the top line and sink margins. In HDD downturns, these stocks can crater.
The risk of HDD obsolescence, driven by displacement by SSDs, will always hang over Seagate. As more end markets phase out HDDs, the company is set to almost exclusively rely on the nearline storage market.
If there is any leveling off in data center demand for HDDs in the near term, or tariffs hurt demand or supply chains, the industry could be set for another brutal business cycle.