Chip Stock InvestorANALYSTAug 2, 2026“Seagate's growth story remains intact with stable 48% YoY revenue growth, record profitability, and a clean balance sheet, though it remains a cyclical stock.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTBut, the growth story is very much still in play.
Why
HDD's are having a resurgence as of late, which is fantastic news for the little duopoly that has been left standing Seagate and Western Digital.
data center revenue 2.9 billion in the quarter up 57% year-over-year
they are not going to be expanding their manufacturing capacity. Instead, they're going to be able to grow their revenue just by simply increasing the number of exabytes shipped per device.
because all expenses are paid for, and as they migrate more of their product line to the HAMR-based technology, basically all of that incremental revenue then becomes profit.
over the course of the next 2 years, most likely that debt is going to be completely gone, or at least most of it will be gone, and they'll be net cash positive.
Take a look at that operating margin. These are record levels of profitability for companies like Seagate or at the very least profitability unlike what they've seen for a very long time.
Risk
cyclicality in the business, unfortunately, doesn't have to happen for stock prices to go down quite dramatically.
this is still a cyclical business. HDDs in particular are very mature technology. So, we fully expect this to still be treated like a cyclical stock over the course of the long term.
The structured call
The receipt
Publish-day price $$812.73 · the claim is anchored to the moment it was said.