Seagate introduces hard drives with up to 36TB capacity, using the innovative Mozaic 3+ platform and advanced HAMR technology.
Seagate Technology Holdings plc STX will release its second-quarter financial results, after the closing bell, on Tuesday, Jan. 21, 2025.
STX's fiscal second-quarter performance is likely to have gained from incremental improvements in mass capacity demand, driven by nearline cloud products.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Seagate (STX), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
Seagate's stock price has dropped over 10% since August, but its strong Q1 performance and cloud storage demand make it a strong buy. Seagate remains a leader in hard drive storage, with significant market share and promising future growth, especially with HAMR technology increasing storage capacity. Despite substantial debt, Seagate plans to pay down $700 million this year and offers a sustainable 3.25% dividend yield at current prices.
Healthy market demand, strategic efforts and strong outlook make STX a compelling investment opportunity.
The chip sector has seen a downturn, with Seagate Technology losing 25% of its value from YTD peaks, presenting a buying opportunity for value investors. Seagate's primary focus on HDDs positions it better amidst the current market turmoil affecting NAND flash memory prices and consumer demand. Over 90% of Seagate's revenue comes from HDDs, versus just over ~50% for peer Western Digital. HDDs have seen rising ASPs, while NAND flash is starting to soften.
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Healthy market demand, strategic efforts and strong outlook make Seagate a compelling investment opportunity.
The digital domain has an insatiable appetite for data that is fueling a boom in the data storage industry. The International Data Corporation (IDC) projects a compound annual growth rate exceeding 10% for the overall data storage market through 2028, a trajectory primarily driven by the exponential growth of artificial intelligence (AI) and cloud computing.
Seagate Technology Holdings plc (NASDAQ:STX ) Barclays 22nd Annual Global Technology Conference December 11, 2024 12:15 PM ET Company Participants Gianluca Romano - CFO Conference Call Participants Thomas O'Malley - Barclays Thomas O'Malley Can kick us off now on the clock, so we know. But welcome back, everyone.
Growth acceleration to increase Seagate's value from $20.8B to $42.5B over the next decade. The misconception that SSDs will push out HDDs has punished STX's valuation down to intrinsic value. My outlook on the company is positive, and I expect investors to start following the stock closer as growth accelerates.