On the company’s fiscal third-quarter earnings call, Mosley argued that artificial intelligence is changing the very nature of how much data the world needs to store<\/strong>, and how urgently companies need to store it.<\/p>\n The numbers backing him up are hard to ignore.<\/p>\n Seagate beat Wall Street’s revenue forecast by more than $150 million<\/strong>, Reuters reported. Free cash flow hit nearly $1 billion<\/strong>, and the company’s forward guidance came in well ahead of what analysts expected.<\/p>\n Every time you use an AI chatbot, ask a voice assistant a question, or get a product recommendation online<\/strong>, that interaction generates data<\/strong>, which needs to be stored.\u00a0<\/p>\n Leading AI chatbots now process billions of user prompts<\/strong> every day. Agentic AI, systems that can act autonomously<\/strong> and complete tasks on their own, push that even further. <\/p>\n These tools continuously take in information, reason through it, and store the results.<\/p>\n “Agentic AI pushes this even further, transforming sporadic engagements into autonomous workflows that continuously ingest inputs, generate reasoning, and store durable outputs,” Mosley stated.<\/p>\n Physical AI is adding another layer.\u00a0<\/p>\n A single self-driving vehicle<\/strong> can generate up to four terabytes of data every hour.\u00a0<\/p>\n That data often needs to be retained for five to 10 years for compliance and retraining purposes<\/strong>.\u00a0<\/p>\n Multiply that across thousands of vehicles<\/strong>, factory robots, and connected devices, and you’re looking at storage demand on a scale <\/strong>that is genuinely hard to comprehend.<\/p>\n Hard disk drives (HDDs), Seagate’s core product, are central to handling large volumes of data. <\/p>\n They are not as fast as flash storage, but they are far more cost- and energy-efficient<\/strong> at scale. That trade-off increasingly works in Seagate’s favor.<\/p>\n Shutterstock<\/p>\n<\/figcaption><\/figure>\n Seagate’s March-quarter results were, by most measures, exceptional.<\/p>\n Seagate also used the quarter to clean up its balance sheet. It retired roughly$641 million in debt<\/strong> and returned $191 million<\/strong> to shareholders through dividends and buybacks.\u00a0<\/p>\n For the current quarter, Seagate is targeting revenue of $3.45 billion<\/strong>, well above the $3.16 billion Wall Street had anticipated. The company is also guiding to adjusted earnings per share of $5.00, with a $0.20 variance in either direction.<\/p>\n None of this is happening by accident. Seagate has been investing in a next-generation recording technology<\/strong> called Heat-Assisted Magnetic Recording, or HAMR, which allows it to pack more data onto each disk.<\/p>\n Its latest HAMR-based platform<\/strong>, Mozaic 4+, can store up to 44 terabytes per drive \u2014more than 30% more than the previous generation \u2014 without adding extra disks or significantly changing the bill of materials.\u00a0<\/p>\n That matters because more capacity per drive means lower cost and lower power usage per terabyte for customers<\/strong>.<\/p>\n Two of the world’s largest cloud providers have now qualified the Mozaic 4+ platform, and Mosley said the timelines matched what customers see with older PMR technology, a sign the platform has matured faster than expected.<\/p>\n Nearline storage, the high-capacity drives that power cloud data centers, accounted for close to 90% of total exabyte shipments in the March quarter<\/strong>.\u00a0<\/p>\n And that demand shows no sign of slowing. Seagate said capacity is nearly fully allocated through calendar 2027<\/strong>, with contracts for fiscal 2027 already locked in on pricing and volume.<\/p>\n The top three global cloud providers alone have nearly doubled their Remaining Performance Obligations<\/strong>, a measure of future committed spending, to a combined $1.1 trillion.\u00a0<\/p>\n Mosley raised Seagate’s annual revenue growth target from the low-to-mid-teens to at least 20% over the coming years, saying the company is now entering “a period of structural growth.”<\/p>\n That is a bold claim. But right now, the data is squarely on his side.<\/p>\n Related: Seagate adds $15B in market cap on surprise news<\/strong><\/p>\n #Seagate #CEO #sends #bold #message #data #storage<\/p>\n","protected":false},"excerpt":{"rendered":" Something is shifting fast in the world of data storage, and Seagate TechnologyCEO Dave Mosley isn’t shy about saying so. On the company’s fiscal third-quarter earnings call, Mosley argued that… <\/p>\n","protected":false},"author":1,"featured_media":998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[1476,369,343,267,1219,1538,312],"class_list":["post-997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-bold","tag-ceo","tag-data","tag-message","tag-seagate","tag-sends","tag-storage"],"_links":{"self":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=997"}],"version-history":[{"count":0,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/997\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/media\/998"}],"wp:attachment":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}AI is rewriting the rules of data storage demand<\/strong><\/h2>\n
![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAyODQ0OTc2\/seagate_headquarters.jpg?io=1&profile=rss\")
Seagate’s record profits and forecast stunned Wall Street<\/strong><\/h2>\n
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HAMR technology is Seagate’s long-term edge<\/strong><\/h2>\n
More AI Stocks:<\/strong><\/h3>\n
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