We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Seagate's HAMR + SMR Breakthrough: Can Azure Boost AI Storage Growth?
Read MoreHide Full Article
Key Takeaways
Seagate's Mozaic HAMR SMR drives are the first and only SMR drives approved for Broadcom's HBA.
Microsoft Azure Storage qualified Broadcom's HBA with STX's HAMR SMR technology for hyperscale data centers.
Mozaic 4, supporting up to 44TB, is ramping with 2 major cloud providers, targeting 50% of HAMR exabytes.
Seagate Technology Holdings plc. (STX - Free Report) recently achieved a major interoperability milestone poised to strengthen its position in the rapidly expanding data storage market. The company has announced that its Mozaic drives, powered by HAMR and configured with shingled magnetic recording (SMR), are the first and only SMR drives on Broadcom’s (AVGO - Free Report) approved vendor list for its host bus adapter (HBA).
The development gains further momentum as Microsoft Azure Storage has completed qualification of the Broadcom HBA with Seagate’s HAMR + SMR technology. This validation demonstrates how the technologies can work together in hyperscale data center environments. As AI, cloud computing and data-intensive applications increase storage requirements, Seagate’s latest achievement is likely to broaden adoption of high-capacity hard drives.
AI infrastructure depends not only on GPUs and high-speed networking but also on storage. AI workloads generate massive amounts of data, including training datasets, inference logs, documents, images and backups, creating demand for cost-effective, high-capacity storage. As AI adoption grows, data centers need more capacity without disproportionately increasing costs and power consumption. Seagate’s Mozaic platform addresses this need by increasing drive capacity, while improved interoperability with Broadcom’s HBA infrastructure could simplify integration into existing and planned storage systems.
Mozaic and HAMR strengthen its competitive position. Seagate’s areal-density roadmap enables higher exabyte output without a proportional increase in drive production, improving capital efficiency and reducing customers’ cost and power consumption per terabyte. HAMR accounted for about 40% of nearline exabyte shipments at fiscal 2026 year-end. Mozaic 3 is qualified across major cloud customers, while Mozaic 4, supporting up to 44TB, is ramping with the two largest global cloud providers. STX expects Mozaic 4 to account for 50% of HAMR exabytes by year-end 2026, with Mozaic 5 qualification shipments on track for late 2027. Higher capacities and the shift to four-terabyte-per-disk technology should improve cost efficiency and profitability, while tight industry supply supports favorable pricing.
Can STX Maintain Its Edge as Storage Rivals Advance?
Western Digital Corporation (WDC - Free Report) is developing and deploying higher-capacity ePMR, UltraSMR and HAMR drives, along with high-bandwidth drive technology for data-intensive workloads. Its product roadmap includes ePMR drives with capacities up to 40 TB, 44-TB HAMR products planned for the first half of calendar 2027 and 50-TB products planned for the second half of calendar 2027. WDC expects the 40-TB ePMR transition, wider UltraSMR adoption and subsequent HAMR introduction to expand the number of exabytes it can deliver without adding unit capacity. Management also cited increased enterprise OEM interest in hybrid storage systems and is working with those customers on UltraSMR, next-generation ePMR and HAMR adoption.
Micron Technology (MU - Free Report) is broadening its technology roadmap to include higher-value memory and storage products. In the fiscal fourth quarter, its 1-gamma DRAM and G9 NAND nodes were its largest production nodes and were on track to become its highest-volume nodes. Next-generation DRAM and NAND nodes remain scheduled for volume production in the second half of calendar 2027. In September, Micron successfully demonstrated the world's first 512GB DDR5 module on multiple server platforms. The advanced DRAM packaging will enhance data center performance with speeds up to 9,200 MT/s, while reducing operating power by more than 60%. These launches expand participation across cloud, client, mobile and autonomous systems.
STX Price Performance, Valuation and Estimates
In the past year, STX shares have skyrocketed 188.9%, outperforming the Computer Integrated Systems industry’s growth of 102%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 14.98 forward earnings compared with 9.76 for the industry.
Image Source: Zacks Investment Research
STX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2027 have been revised up 1.8% to $36.72 over the past 60 days, while estimates for fiscal 2028 have risen 2.08% to $59.49.
View the Zacks #1 Rank List
Image: Bigstock
Seagate's HAMR + SMR Breakthrough: Can Azure Boost AI Storage Growth?
Key Takeaways
Seagate Technology Holdings plc. (STX - Free Report) recently achieved a major interoperability milestone poised to strengthen its position in the rapidly expanding data storage market. The company has announced that its Mozaic drives, powered by HAMR and configured with shingled magnetic recording (SMR), are the first and only SMR drives on Broadcom’s (AVGO - Free Report) approved vendor list for its host bus adapter (HBA).
The development gains further momentum as Microsoft Azure Storage has completed qualification of the Broadcom HBA with Seagate’s HAMR + SMR technology. This validation demonstrates how the technologies can work together in hyperscale data center environments. As AI, cloud computing and data-intensive applications increase storage requirements, Seagate’s latest achievement is likely to broaden adoption of high-capacity hard drives.
AI infrastructure depends not only on GPUs and high-speed networking but also on storage. AI workloads generate massive amounts of data, including training datasets, inference logs, documents, images and backups, creating demand for cost-effective, high-capacity storage. As AI adoption grows, data centers need more capacity without disproportionately increasing costs and power consumption. Seagate’s Mozaic platform addresses this need by increasing drive capacity, while improved interoperability with Broadcom’s HBA infrastructure could simplify integration into existing and planned storage systems.
Mozaic and HAMR strengthen its competitive position. Seagate’s areal-density roadmap enables higher exabyte output without a proportional increase in drive production, improving capital efficiency and reducing customers’ cost and power consumption per terabyte. HAMR accounted for about 40% of nearline exabyte shipments at fiscal 2026 year-end. Mozaic 3 is qualified across major cloud customers, while Mozaic 4, supporting up to 44TB, is ramping with the two largest global cloud providers. STX expects Mozaic 4 to account for 50% of HAMR exabytes by year-end 2026, with Mozaic 5 qualification shipments on track for late 2027. Higher capacities and the shift to four-terabyte-per-disk technology should improve cost efficiency and profitability, while tight industry supply supports favorable pricing.
Can STX Maintain Its Edge as Storage Rivals Advance?
Western Digital Corporation (WDC - Free Report) is developing and deploying higher-capacity ePMR, UltraSMR and HAMR drives, along with high-bandwidth drive technology for data-intensive workloads. Its product roadmap includes ePMR drives with capacities up to 40 TB, 44-TB HAMR products planned for the first half of calendar 2027 and 50-TB products planned for the second half of calendar 2027. WDC expects the 40-TB ePMR transition, wider UltraSMR adoption and subsequent HAMR introduction to expand the number of exabytes it can deliver without adding unit capacity. Management also cited increased enterprise OEM interest in hybrid storage systems and is working with those customers on UltraSMR, next-generation ePMR and HAMR adoption.
Micron Technology (MU - Free Report) is broadening its technology roadmap to include higher-value memory and storage products. In the fiscal fourth quarter, its 1-gamma DRAM and G9 NAND nodes were its largest production nodes and were on track to become its highest-volume nodes. Next-generation DRAM and NAND nodes remain scheduled for volume production in the second half of calendar 2027. In September, Micron successfully demonstrated the world's first 512GB DDR5 module on multiple server platforms. The advanced DRAM packaging will enhance data center performance with speeds up to 9,200 MT/s, while reducing operating power by more than 60%. These launches expand participation across cloud, client, mobile and autonomous systems.
STX Price Performance, Valuation and Estimates
In the past year, STX shares have skyrocketed 188.9%, outperforming the Computer Integrated Systems industry’s growth of 102%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 14.98 forward earnings compared with 9.76 for the industry.
Image Source: Zacks Investment Research
STX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2027 have been revised up 1.8% to $36.72 over the past 60 days, while estimates for fiscal 2028 have risen 2.08% to $59.49.
Image Source: Zacks Investment Research
STX currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.