Seagate's Winning Strategy: HAMR Technology, Growing Margins, And Upcoming Demand Cycle

MS Research
126 Followers

Summary

  • Seagate's Mozaic platform and HAMR technology are expected to boost revenues and increase operating margins.
  • The periodic replacement or upgrading of existing storage units will contribute to Seagate's sales growth.
  • Seagate's gross margin is projected to return to sustainable levels, leading to a higher valuation.

Seagate operational headquarters in Fremont, California, USA

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Thesis

Seagate Technology Holdings plc (NASDAQ:STX) is at the forefront of the market for solving mass-capacity storage problems. With breakthrough technologies, its product portfolio consists of storage devices, systems, and services from edge to cloud for OEMs, distributors, retailers, and institutions. As of 04/12/24, STX's stock price

This article was written by

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I found myself getting interested in Economic/Finance when during my college days in India in mid 1990s I would immerse myself in the "Business" section of Times of India/Hindustan Times. I came to United States for a masters program in 1998 and interest further grew during the dot com bubble when I saw a lot of friends making money (and eventually losing it). I invested like a lot of novice investors back then with borrowed money and made a lot of mistakes. One of the first books that I read after that was "one up on the wall street" by Peter Lynch and it made a great impression on me for its simplicity and focus on value investing. For similar reasons, Iam a great fan of Warren Buffett. Though Iam a great proponent of value investing, I do not discard tech analysis altogether. They can be helpful in pulling the trigger on buy and sell decisions. I do a lot of reading on my own and love looking at the balance sheets of companies to gauge the health of the firm. By profession, Iam an IT engineer. The investment in stocks/funds have helped me invest during the lean times in real estate as well.I also occasionally review articles from AlmaStreet.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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