Core Viewpoint - Seagate Technology (STX.US) shares rose over 2% to $293.27 following a report from Morgan Stanley reaffirming an "overweight" rating, predicting continued strong demand for hard disk drives (HDD) until 2027 [1] Group 1: Company Insights - Morgan Stanley's U.S. Technology Hardware Equity Research Head, Erik Woodring, led a team that met with Seagate's CFO, Gianluca Romano, who indicated that the company expects HDD sales gross margins to exceed 50% in the next 12 months [1]

Core Insights - The demand for real-time access and high-speed processing of massive data is rapidly increasing due to AI inference applications [1] - The HDD market is facing a significant supply gap, prompting NAND Flash manufacturers to accelerate technological advancements and invest in the production of ultra-large capacity Nearline SSDs [1] - The uncertainty regarding future demand has been alleviated as suppliers respond to the growing needs for large-capacity storage products [1] Industry Summary - AI inference applications are driving the demand for high-capacity storage solutions, leading to increased activity among HDD and SSD suppliers [1] - The production focus is shifting towards ultra-large capacity SSDs, with specifications reaching 122TB and even 245TB [1] - The current market dynamics indicate a positive outlook for storage suppliers as they adapt to the evolving requirements of data processing and storage [1]