Core Thesis - Seagate Technology Holdings plc is positioned as a growth-oriented infrastructure provider in the AI-driven storage market, transitioning from a traditional HDD player [2][4] Financial Performance - For Q2 2026, Seagate reported revenue of $2.83 billion and non-GAAP EPS of $3.11, significantly exceeding expectations [3] - The company achieved gross margins of 42.2%, indicating strong pricing power and production discipline [3] - Free cash flow reached $607 million, with operating cash flow at $723 million, while maintaining a $1 billion cash balance and repaying $500 million in debt [5] Capacity and Demand - Nearline capacity is fully booked through 2026, indicating strong demand and long-term contracts with major hyperscalers like Microsoft, Google, and Amazon [4] - The introduction of HAMR technology, with single-platter capacities exceeding 30TB, positions Seagate as a key provider for AI workloads [4] Valuation and Market Position - Seagate's forward P/E is 29.5x, reflecting optimism regarding AI-driven storage demand, although traditional valuations would suggest a lower stock price [6] - The company's strategic positioning, full capacity utilization, and long-term contracts create a compelling investment narrative, offering both short-term momentum and long-term growth potential [6]