STX Unveils 36TB Hard Drives Using HAMR-Based Mozaic 3+ Technology

Seagate Technology Holdings plc (STX) Announcements - Seagate has announced the shipment of Exos M hard drive samples with capacities of up to 36TB, utilizing the Mozaic 3+ platform featuring HAMR technology [1] - The Exos M drives are designed to meet the massive storage needs of modern data centers, addressing exponential data growth driven by cloud and AI adoption [2] - The company is scaling production of Exos M drives with capacities of up to 32TB for a leading cloud service provider and sampling 36TB drives [3] Exos M Drive Benefits - Exos M drives offer 300% more storage capacity within the same footprint, 25% lower cost per terabyte, and 60% lower power consumption per terabyte compared to Exos X10 drives [3] - The drives feature an efficient 10-platter design, achieving 3.6TB per platter, with plans to increase this to 10TB per platter in the future [4] HAMR Technology and Market Trends - Seagate expects HAMR technology to capitalize on megatrends like AI and machine learning, driving long-term demand for cost-effective mass-capacity storage solutions [5] - The company's 24TB CMR and 28TB SMR drives now represent the second-highest revenue product, contributing over 20% of total nearline revenues [5] Mozaic 3+ Platform Adoption - Adoption of the Mozaic 3+ platform is gaining momentum, with qualification progressing well with a lead CSP customer and expanded qualifications with other cloud and enterprise customers [6] - Seagate anticipates delivering further capacity increases through areal density gains with its Mozaic 4+ platform, leading to cost savings for customers [6] Financial Outlook - Seagate anticipates Q2 fiscal 2025 revenues to be $2.3 billion (+/-$150 million), driven by strengthening nearline demand from global cloud customers and improvements in enterprise and OEM markets [7] - The increase in mass capacity revenues is expected to offset lower revenues from legacy and other markets [7] Stock Performance - Seagate's shares have surged 12.1% in the past year, outperforming the industry's growth of 1.5% [9] Broader Technology Sector Stocks - InterDigital, Inc (IDCC) sports a Zacks Rank 1 (Strong Buy) with a long-term earnings growth rate of 15% and shares up 39.3% in the past six months [12] - NetApp, Inc (NTAP) carries a Zacks Rank 2 (Buy) with a long-term earnings growth rate of 7.2% and shares up 37.8% in the past year [13] - Intrusion Inc (INTZ) carries a Zacks Rank 2 (Buy) with shares surging 75% in the past six months [14]