Seagate Technology Holdings plc (NASDAQ: STX) is a leading provider of data storage technology and infrastructure solutions.
Seagate reported revenues of $6.55 billion in fiscal 2024. In the fiscal fourth quarter of 2024, non-GAAP revenues of $1.89 billion beat the Zacks Consensus Estimate by 1.5%. The figure increased 18% on a year-over-year basis and 14% sequentially driven by growing demand for mass capacity solutions. Management projected revenues to be $1.85 billion (+/- $150 million) for the fiscal fourth quarter.
STX Witnesses Solid Demand for Mass Capacity
Seagate is witnessing mass capacity demand improvement with nearline cloud demand picking up pace. In the last reported quarter, mass capacity revenues surged 46% year over year to $1.44 billion, owing to stronger global cloud demand. Sequentially, mass capacity revenues were up 22%.
Strengthening the global cloud demand environment is fueling demand for nearline capacity demand. In the last reported quarter, nearline cloud revenues more than doubled year over year, owing to higher traditional cloud computing workloads and new AI deployments. STX expects this momentum to continue in fiscal 2025.
Also, cloud service providers are focusing more on the development of AI applications while building cloud infrastructure. This includes training of large language models and expansion of the entire hardware stack to cushion generative AI content-driven growth. Seagate believes HDDs will play a key role in enabling these stages of the AI adoption curve and expects HDD demand to pick up pace going ahead.
Seagate's launch of the Mozaic 3+ hard drive platform, featuring Heat-Assisted Magnetic Recording (HAMR) technology, is also expected to aid ...
