Seagate: HAMR Has Matured Into A Supply Story

The Curious Analyst4.11K FollowersFollow5ShareSavePlay(10min)CommentsSummaryI reiterate Seagate Technology Holdings (STX) with a Strong Buy rating as HAMR technology transitions from roadmap to production, driving margin expansion and customer commitments.STX is now positioned as a supply assurance asset for AI infrastructure, with nearline capacity fully allocated through 2026 and orders opening for 2027.Mozaic 4+ HAMR drives are qualified and in production with major hyperscalers, supporting a shift to higher capacity, better mix, and improved earnings power.Despite trading at a sector premium on P/E and EV/EBITDA, STX's forward PEG of 0.75x and robust AI-driven demand signal further upside potential. Just_Super/E+ via Getty Images Investment Thesis When I first wrote about Seagate Technology Holdings (STX), the big idea was simple. That HAMR would matter. And AI would create more storage demand. And STX would be one of the cleanest beneficiaries. InThis article was written byThe Curious Analyst4.11K FollowersFollowMy background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis .I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.Associated with the another author Kennedy NjagiAnalyst’s Disclosure: I/we have a beneficial long position in the shares of STX either through stock ownership, options, or other derivatives. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.