Disk drive duopoly darts higher after Seagate earnings
The hard disk drive was invented back in 1956, but it’s arguably one of the sexiest technologies today — at least judging by the price increases.
Seagate Technology Holdings and Western Digital soared Wednesday after Seagate reported better-than-expected numbers for last quarter and ratcheted up its guidance for the current one, citing demand and price hikes for the once humble hard disk drive.
Bernstein Research analysts wrote of Seagate’s numbers:
“Seagate sees structurally stronger AI-driven HDD demand, with capacity largely allocated through CY27 via LTAs (long term agreements). As AI accelerates data creation, extends retention, and increases reliance on historical datasets for advanced reasoning and training, management sees significant, structural growth in HDD demand. Seagate is seeing stronger demand today than it did 6-12 months ago.”
Bernstein’s Seagate analyst, Mark Newman, also called out the “biggest demand driven QoQ price increase in a decade plus.”
Western Digital, the chief rival of Seagate in the hard disk drive market, ripped on the report as well. (It reports earnings tomorrow after the close.)
Over the last three months alone, Seagate has more than doubled and Western Digital is up more than 90%. Yowza.
Bernstein Research analysts wrote of Seagate’s numbers:
“Seagate sees structurally stronger AI-driven HDD demand, with capacity largely allocated through CY27 via LTAs (long term agreements). As AI accelerates data creation, extends retention, and increases reliance on historical datasets for advanced reasoning and training, management sees significant, structural growth in HDD demand. Seagate is seeing stronger demand today than it did 6-12 months ago.”
Bernstein’s Seagate analyst, Mark Newman, also called out the “biggest demand driven QoQ price increase in a decade plus.”
Western Digital, the chief rival of Seagate in the hard disk drive market, ripped on the report as well. (It reports earnings tomorrow after the close.)
Over the last three months alone, Seagate has more than doubled and Western Digital is up more than 90%. Yowza.
