Here are a couple of analogies for Seagate Technology (STX):

• Cisco for data storage (Seagate provides the essential hardware for storing data, much like Cisco provides essential networking hardware for the internet and data centers.)

• The Intel of data storage (Seagate is a dominant manufacturer of fundamental data storage components like hard drives and SSDs, similar to how Intel is a dominant manufacturer of fundamental computing components like CPUs.)

• Hard Disk Drives (HDDs): Traditional magnetic data storage devices primarily used in personal computers, servers, and data centers for mass data storage.
• Solid State Drives (SSDs): High-performance storage devices that use flash memory for faster data access, commonly found in laptops, desktops, and enterprise systems.
• Enterprise Data Storage Systems: Integrated hardware and software solutions designed for large-scale data storage, management, and protection in business and cloud environments.

Seagate Technology (STX) primarily sells its data storage products and solutions to other companies, operating on a business-to-business (B2B) model. Its major customers fall into categories such as hyperscale cloud providers, original equipment manufacturers (OEMs) for computers and servers, and enterprise storage system integrators.

Here are some of Seagate Technology's major customer companies:

• Microsoft Corporation (Symbol: MSFT) - For its Azure cloud services and other enterprise solutions.
• Amazon.com, Inc. (Symbol: AMZN) - Primarily for its Amazon Web Services (AWS) cloud infrastructure.
• Alphabet Inc. (Symbols: GOOGL, GOOG) - For its Google Cloud Platform and other data center needs.
• Meta Platforms, Inc. (Symbol: META) - For its extensive data center infrastructure supporting Facebook, Instagram, WhatsApp, and other services.
• Dell Technologies Inc. (Symbol: DELL) - As an OEM for integrating Seagate drives into their PCs, servers, and storage systems.
• HP Inc. (Symbol: HPQ) - As an OEM for integrating Seagate drives into their PCs and servers.

• TDK Corporation (6762.T)
• Resonac Holdings Corporation (4004.T)

The accelerating encroachment of high-capacity, low-cost solid-state drives (SSDs), particularly those leveraging QLC (Quad-Level Cell) and emerging PLC (Penta-Level Cell) NAND technologies, into the bulk storage and nearline data center market. This trend threatens to erode the cost-per-gigabyte advantage of hard disk drives (HDDs) in segments historically dominated by Seagate, potentially leading to faster-than-anticipated displacement of HDDs for various data center workloads beyond just high-performance applications.

Seagate Technology (STX) operates in several significant addressable markets for its data storage products and services, including Hard Disk Drives (HDDs), Solid-State Drives (SSDs), and broader data storage solutions encompassing enterprise and consumer segments, as well as cloud and data management services.

Hard Disk Drive (HDD) Market

• The global Hard Disk Drive (HDD) market was valued at approximately USD 61.47 billion in 2024 and is projected to grow to USD 92.22 billion by 2032, exhibiting an annual compound annual growth rate (CAGR) of 5.2%. Other estimates place the global HDD market size at USD 19.62 million in 2024, expected to reach USD 23.28 million by 2033, with a CAGR of 1.92% from 2025 to 2033. Another projection indicates a growth from USD 66.6 billion in 2025 to USD 111.2 billion by 2035, with a CAGR of 5.3%.
• In 2024, the United States accounted for approximately 32% of the global HDD market share.
• A major driver for HDDs is the demand for mass-capacity storage in cloud infrastructure and data centers, significantly fueled by artificial intelligence (AI) applications. Global storage demand is anticipated to surpass 12 zettabytes (ZB) annually by 2027, with approximately 80% of this demand expected to be met by HDDs, creating a 9.6 ZB per year market for HDDs.

Solid-State Drive (SSD) Market

• The global Solid-State Drive (SSD) market was valued at USD 65.08 billion in 2024 and is projected to reach USD 279.97 billion by 2033, growing at a CAGR of 17.6% from 2025. Other reports estimate the global SSD market at USD 36.40 billion in 2024, with a projected increase to USD 156.86 billion by 2035 at a CAGR of 14.20%. Another valuation puts the global SSD market size at USD 17.79 billion in 2024, expected to grow to USD 82.22 billion by 2032, with a CAGR of 21.2%.
• North America held the largest share of the global SSD market, accounting for 38.22% in 2024.

Overall Data Storage Market

• The global data storage market was valued at USD 218.33 billion in 2024. It is projected to grow from USD 255.29 billion in 2025 to USD 774.00 billion by 2032, at a CAGR of 17.2%. Another source indicates a market size of USD 250.77 billion in 2025, reaching USD 483.90 billion by 2030 with a CAGR of 14.05%.
• North America was the dominant region in the global data storage market, holding a 42.07% share in 2024.

Enterprise Data Storage Market

• The global enterprise data storage market was valued at approximately USD 87.65 billion in 2023 and is predicted to grow to around USD 117.39 billion by 2032, with a CAGR of roughly 3.30% between 2024 and 2032.
• Another forecast suggests the enterprise data storage market size will increase by USD 12.5 billion between 2024 and 2029, growing at a CAGR of 4.5%.

Consumer Data Storage Devices Market

• The global consumer data storage devices market was valued at approximately USD 17.57 billion in 2024 and is projected to reach USD 24.45 billion by 2034, demonstrating a CAGR of 3.4%. Another estimate shows the market valued at USD 18.49 billion in 2022 and projected to reach USD 26.29 billion by 2030, with a CAGR of 4.5%.

Data Center Storage Market

• The global data center storage market is estimated at USD 71.98 billion in 2025 and is projected to reach USD 208.96 billion by 2034, growing at a CAGR of 12.61%. North America held the largest share of this market in 2024.

1. Surging Demand from AI and Cloud Data Centers: Seagate anticipates continued robust demand for its high-capacity storage products, primarily fueled by the exponential growth of artificial intelligence (AI) applications, cloud computing, and the proliferation of unstructured data, particularly video content. Data center revenue already accounts for a significant portion of Seagate's total revenue, and this trend is expected to accelerate as AI inferencing scales rapidly and global cloud customers continue to expand their infrastructure.
2. Advancements in HAMR Technology and Mozaic Product Roadmap: A key driver is Seagate's leadership in Heat-Assisted Magnetic Recording (HAMR) technology, embodied in its Mozaic platform. The company has successfully shipped over 1 million Mozaic HAMR drives and is actively qualifying Mozaic 3+ drives with major cloud customers. The upcoming ramp-up of Mozaic 4+ in the second half of fiscal year 2026, offering capacities up to 44 terabytes per drive, and a long-term roadmap extending to 50TB+ drives and 10TB per disk technology by 2028, will enable higher storage densities and lower cost per terabyte, reinforcing Seagate's competitive advantage and driving demand for its next-generation solutions.
3. Growth in Mass Capacity Product Shipments: Seagate is experiencing strengthening demand for its mass capacity products across global nearline cloud and enterprise markets. This growth in high-capacity nearline drives is more than offsetting the sequential decline in legacy and non-HDD businesses, indicating a favorable shift in product mix towards higher-value solutions. The company's focus on this profitable segment of the storage industry is expected to continue driving revenue.
4. Long-term Build-to-Order Contracts with Cloud Providers: Seagate's strategy includes securing multi-year, build-to-order agreements with major cloud providers. These contracts provide significant visibility into future demand, with nearline production largely committed through calendar 2026 and long-term demand visibility extending through calendar 2027. This model helps ensure supply aligns with demand, supports investment in new products, and mitigates risks, contributing to more stable and predictable revenue streams.

Share Repurchases

• Seagate's board of directors approved a new $5 billion share repurchase program in May 2025. This program has no set expiration date and offers flexibility in execution.
• The company repurchased shares worth $1.799 billion in fiscal year 2022 and $408 million in fiscal year 2023.
• Management plans to return at least 75% of its free cash flow to shareholders through dividends and buybacks.

Share Issuance

• In November 2025, Seagate announced privately negotiated exchange agreements for $500 million in principal amount of its 3.50% Exchangeable Senior Notes due 2028. The consideration for this exchange includes approximately $503.4 million in cash and a number of ordinary shares of Seagate Technology.

Capital Expenditures

• Seagate reported capital expenditures of $1.453 billion for the latest twelve months ending June 27, 2025.
• Projected capital expenditures are expected to range between 4% and 6% of revenue, indicating a relatively low capital-intensive industry.
• A significant focus of capital expenditures has been on research and development (R&D) and manufacturing for the transition from PMR to HAMR (Heat-Assisted Magnetic Recording) technology, with management not planning to add additional production capacity for next-generation HAMR drives to maintain pricing power. AI infrastructure demand is also driving capital allocation.