Investment Thesis
Seagate Technology manufactures hard disk drives for hyperscale, enterprise, and client applications. While HDD units are cyclical, heat-assisted magnetic recording (HAMR) drives and AI storage demand underpin long-term relevance.
- HAMR Leadership: Next-gen drives deliver 30+ TB capacities for cloud providers.
- Cost Actions: Lean manufacturing and restructuring improve operating leverage.
- Return of Capital: High free cash flow conversion supports dividends/buybacks.