Seagate(US:STX)2025-05-23 07:07Seagate's Strategy and Innovation - Seagate is focused on enabling global technology megatrends through innovative data storage solutions[12] - The company is innovating data storage at scale with HAMR (Heat-Assisted Magnetic Recording) technology to meet the world's growing data needs[12, 32] - Seagate's Mozaic (HAMR) products offer cost-efficient capacity scaling by storing more data on each disk, rather than adding more disks[34] - The company is developing Mozaic 5+ with a path to 10TB per disk[82, 110] Market Trends and Demand - Data generation is fueling data center storage demand, with a projected mid-20% exabyte CAGR (Compound Annual Growth Rate)[20] - AI is poised to drive the next wave of mass capacity storage demand, as AI relies on mass capacity storage[23, 24] - Emerging Edge AI use cases are driving extraordinary CAGRs in various industries, such as financial services (+40%), video intelligence (+36%), smart factory (+31%), smart grid (+29%), and hospitals (+34%)[134] Financial Performance and Targets - Seagate has generated over $4 billion in free cash flow[60, 64] - The company is targeting a gross margin of 40% with further expansion opportunities[204, 213] - Seagate is committed to returning over 75% of free cash flow to shareholders through dividends and share repurchases[213, 219] - The company is raising its share repurchase authorization to $5 billion[68, 215, 219]