Seagate Technology

Fidelity's Dividend Growth Fund cited Seagate Technology as a top contributor after surging demand for hard-disk drives in AI-capable data centers boosted sales and pricing power. Seagate reported revenue, earnings and profitability above consensus in its latest quarter and raised guidance. The stock has rallied strongly over the past year despite a recent pullback, reflecting market optimism about AI-related storage demand. » More on finance.yahoo.com

Seagate reports demand continues to exceed supply and expects the gap to widen. The company is shifting from 30- to 40-terabyte HAMR drives and plans to qualify 50-terabyte drives in about a year; medium term Seagate targets average annual exabyte growth of at least 25% without increasing unit volumes. Free cash flow was recently over $1.1 billion, debt reduction is largely complete, and the company will place greater emphasis on share buybacks going forward; capex remains disciplined at 4–6% of revenue. Management expects margins to rise further through price improvements and lower cost per terabyte, while operating expenses should remain stable at around $300 million per quarter. » More on de.investing.com

Seagate stock rose intraday by about 5.3% and recovered substantially from the $800 support zone after a decline of around 9.6% in the past ten trading days. Drivers of the recovery are a technical rebound from an oversold condition, an increase in the consensus price target from $1,009 to $1,116, strong demand for nearline and AI storage, and the announced quarterly dividend of $0.74 (ex-dividend date Sept. 24, 2026). The broader market provided little momentum, so the outperformance is stock-specific. » More on de.investing.com