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Seagate Elevates HDD Performance Through Aerial Density Advancements
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Key Takeaways
STX advances HDD innovation via rising areal density, keeping it pivotal to hyperscale data centers.
Seagate's HAMR-based Mozaic 3 offers 3TB per disk up to 36TB, qualified by five global cloud providers.
Seagate is ramping Mozaic 4 to 44TB for early 2026 and advancing 5TB-per-disk technology for 2028.
As cloud computing, AI and data-intensive workloads accelerate, demand for scalable, cost-efficient storage continues to rise. Despite the buzz around flash, HDDs remain the backbone of hyperscale data centers, where capacity, economics and energy efficiency are paramount. At the core of HDD innovation is areal density and advancing it remains one of Seagate Technology Holdings plc’s (STX - Free Report) key strengths and a major driver of industry progress.
Areal density measures how much data is stored per unit of surface area on a hard drive. Often tracked as TB/in² or more intuitively as TB per disk, higher areal density enables greater storage capacity in the same physical space, making it a key advantage for hyperscale data centers scaling efficiently. STX’s aerial density roadmap ensures a lasting TCO advantage for HDDs over alternative technologies.
Customers are increasingly adopting Seagate’s high-capacity HAMR drives to meet rising AI-driven storage demand. Launched in 2024, the Mozaic 3+ platform leverages HAMR to deliver denser, more cost-efficient storage. These industry-leading 3TB-per-disk drives, offering up to 36TB, have been qualified by five global cloud service providers, with the remaining three on track to be qualified by the first half of fiscal 2026. Seagate is also ramping Mozaic 4+ drives up to 44TB, targeting volume production in early 2026, while advancing 5TB-per-disk technology for a 2028 launch, underscoring its long-term areal density leadership.
As data volumes continue to grow exponentially, companies that can deliver more storage with fewer resources will shape the next decade of digital infrastructure. By advancing areal density, Seagate is not only securing its own future but also driving the evolution of HDD technology in a data-driven world.
How STX’s Rivals Measure Up in the Storage Race
STX’s stiff adversary in the HDD space, Western Digital Corporation (WDC - Free Report) , continues to be a cornerstone of the world’s data infrastructure, offering exceptional value for mass storage needs. WDC continues to benefit from the reliability, scalability and TCO advantages of its ePMR and UltraSMR drives while advancing its next-generation HAMR roadmap. Strong purchase commitments from all top seven customers extending into 2027 for one hyperscaler — underscore confidence in its AI-focused storage portfolio. WDC remains on track to begin HAMR qualification in the first half of fiscal 2026, scale to multiple customers by year-end and ramp volume production in the first half of fiscal 2027, supported by a smooth transition from next-gen ePMR drives.
Strength in flash business, the Public Cloud segment and emerging opportunities in cloud/AI bode well for NetApp, Inc. (NTAP - Free Report) . The new all-flash A-series is also picking up momentum. NTAP’s revenue growth in the second quarter was propelled by accelerating demand for its AI offerings, cloud storage services across first-party and marketplace channels, and its all-flash solutions. NetApp’s partnerships with major hyperscalers such as Amazon and Microsoft, through offerings like Amazon FSx for NetApp ONTAP and Microsoft Azure NetApp Files, solidify its position as a critical player in the cloud infrastructure space, which is poised for continued growth as enterprises migrate more workloads to the cloud.
STX’s Price Performance, Valuation & Estimates
In the past year, STX’s shares have soared 217.5% compared with the Computer Integrated Systems industry’s growth of 103.5%.
Image Source: Zacks Investment Research
STX stock is not so cheap, as its Value Style Score of D suggests a stretched valuation at this moment. In terms of forward price/earnings, STX’s shares are trading at 27.23X, higher than the industry’s 18.74X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for STX’s earnings for fiscal 2026 remains unchanged over the past 60 days.
Image: Bigstock
Seagate Elevates HDD Performance Through Aerial Density Advancements
Key Takeaways
As cloud computing, AI and data-intensive workloads accelerate, demand for scalable, cost-efficient storage continues to rise. Despite the buzz around flash, HDDs remain the backbone of hyperscale data centers, where capacity, economics and energy efficiency are paramount. At the core of HDD innovation is areal density and advancing it remains one of Seagate Technology Holdings plc’s (STX - Free Report) key strengths and a major driver of industry progress.
Areal density measures how much data is stored per unit of surface area on a hard drive. Often tracked as TB/in² or more intuitively as TB per disk, higher areal density enables greater storage capacity in the same physical space, making it a key advantage for hyperscale data centers scaling efficiently. STX’s aerial density roadmap ensures a lasting TCO advantage for HDDs over alternative technologies.
Customers are increasingly adopting Seagate’s high-capacity HAMR drives to meet rising AI-driven storage demand. Launched in 2024, the Mozaic 3+ platform leverages HAMR to deliver denser, more cost-efficient storage. These industry-leading 3TB-per-disk drives, offering up to 36TB, have been qualified by five global cloud service providers, with the remaining three on track to be qualified by the first half of fiscal 2026. Seagate is also ramping Mozaic 4+ drives up to 44TB, targeting volume production in early 2026, while advancing 5TB-per-disk technology for a 2028 launch, underscoring its long-term areal density leadership.
As data volumes continue to grow exponentially, companies that can deliver more storage with fewer resources will shape the next decade of digital infrastructure. By advancing areal density, Seagate is not only securing its own future but also driving the evolution of HDD technology in a data-driven world.
How STX’s Rivals Measure Up in the Storage Race
STX’s stiff adversary in the HDD space, Western Digital Corporation (WDC - Free Report) , continues to be a cornerstone of the world’s data infrastructure, offering exceptional value for mass storage needs. WDC continues to benefit from the reliability, scalability and TCO advantages of its ePMR and UltraSMR drives while advancing its next-generation HAMR roadmap. Strong purchase commitments from all top seven customers extending into 2027 for one hyperscaler — underscore confidence in its AI-focused storage portfolio. WDC remains on track to begin HAMR qualification in the first half of fiscal 2026, scale to multiple customers by year-end and ramp volume production in the first half of fiscal 2027, supported by a smooth transition from next-gen ePMR drives.
Strength in flash business, the Public Cloud segment and emerging opportunities in cloud/AI bode well for NetApp, Inc. (NTAP - Free Report) . The new all-flash A-series is also picking up momentum. NTAP’s revenue growth in the second quarter was propelled by accelerating demand for its AI offerings, cloud storage services across first-party and marketplace channels, and its all-flash solutions. NetApp’s partnerships with major hyperscalers such as Amazon and Microsoft, through offerings like Amazon FSx for NetApp ONTAP and Microsoft Azure NetApp Files, solidify its position as a critical player in the cloud infrastructure space, which is poised for continued growth as enterprises migrate more workloads to the cloud.
STX’s Price Performance, Valuation & Estimates
In the past year, STX’s shares have soared 217.5% compared with the Computer Integrated Systems industry’s growth of 103.5%.
Image Source: Zacks Investment Research
STX stock is not so cheap, as its Value Style Score of D suggests a stretched valuation at this moment. In terms of forward price/earnings, STX’s shares are trading at 27.23X, higher than the industry’s 18.74X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for STX’s earnings for fiscal 2026 remains unchanged over the past 60 days.
Image Source: Zacks Investment Research
Currently, Seagate carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.