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Seagate Jumps 7.3% After Analyst Raises Target on AI Storage Demand

Seagate Technology (STX) gained 7.3% on Friday after China Renaissance raised its price target on the data storage company from $802 to $983, reflecting growing confidence in the long-term demand outlook for high-capacity storage solutions.

The rally comes as investors increasingly recognize Seagate as a key beneficiary of the artificial intelligence boom. While much of the market's focus has been on AI chips and servers, the rapid growth of AI applications is also creating enormous demand for data storage infrastructure, where Seagate holds a leading position.

AI training and inference workloads require massive amounts of data to be stored, managed, and accessed efficiently. As hyperscale cloud providers and enterprises expand their AI investments, demand for high-capacity hard disk drives is expected to rise alongside spending on compute infrastructure.

The target increase suggests analysts see stronger earnings potential as Seagate benefits from improving storage market fundamentals, recovering enterprise spending, and growing AI-related demand. Investors have become increasingly optimistic that storage vendors will play a larger role in the AI ecosystem than previously anticipated.

Seagate has also benefited from improving supply-demand conditions in the storage market following a prolonged industry downturn. Higher drive shipments, firmer pricing, and stronger data-center demand have helped improve expectations for profitability and cash flow.

The advance reflects the market's view that Seagate is emerging as an underappreciated AI infrastructure beneficiary, with growing storage requirements potentially supporting stronger revenue and earnings growth over the coming years.
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WS Investor 06-12-26
Seagate Technology Holdings reported fiscal second-quarter 2026 results that exceeded expectations, driven by strong data center demand and the continued ramp-up of its HAMR-based Mozaic products. Revenue reached $2.83 billion, while GAAP diluted earnings per share rose to $2.60 and non-GAAP EPS to $3.11. GAAP gross margin improved to 41.6%, reflecting record profitability for the company.

During the quarter, Seagate generated $723 million in operating cash flow and $607 million in free cash flow, retired $500 million of exchangeable senior notes due 2028, and declared a quarterly dividend of $0.74 per share. Looking ahead, the company guided for fiscal third-quarter 2026 revenue of about $2.9 billion and non-GAAP EPS of approximately $3.40, citing sustained exabyte-scale storage demand fueled by AI-driven data growth.
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The Investor 01-28-26
Seagate Announces Early Results and Amendment to Exchange Offers for Senior Notes

Seagate announced the early participation results of its exchange offers and consent solicitations regarding eight series of senior notes originally issued by Seagate HDD Cayman. As of the early participation deadline on June 10, 2025 (5:00 p.m. New York City time), significant portions of the outstanding notes had been validly tendered:

9.625% Notes due 2032: 95.11% tendered

8.250% Notes due 2029: 95.39% tendered

8.500% Notes due 2031: 93.99% tendered

4.091% Notes due 2029: 91.25% tendered

3.125% Notes due 2029: 70.88% tendered

3.375% Notes due 2031: 72.98% tendered

4.125% Notes due 2031: 86.63% tendered

5.750% Notes due 2034: 61.49% tendered

The required consents to adopt the proposed amendments to the existing indentures were received for all note series. These amendments, once operative, will remove most restrictive covenants and select default provisions.

In a key update, Seagate modified the terms of the exchange offers: holders who tender their notes after the early deadline but before the final expiration date will now receive the same total consideration—$1,000 principal amount of new notes plus $1.25 in cash per $1,000 of old notes.

The exchange offers and consent solicitations are set to expire on June 26, 2025, unless extended. Settlement will occur shortly after expiration.

The new notes will be issued under multiple indentures, rather than a single one as initially planned. Other terms remain unchanged.

The exchange offers are limited to eligible holders under applicable securities regulations, including Rule 144A and Regulation S under the Securities Act, and similar frameworks in jurisdictions such as the EEA, the U.K., and Singapore.
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ME NEWS 06-17-25
Seagate Announces $400 Million Senior Notes Offering to Redeem 2027 Debt

Seagate Technology Holdings plc announced that its subsidiary, Seagate Data Storage Technology Pte. Ltd. (SDST), has entered into a purchase agreement to issue $400 million in aggregate principal amount of 5.875% Senior Notes due 2030. The offering will be made in a private placement to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S.

The Notes will be senior unsecured obligations of SDST and will be guaranteed on the same basis by Seagate Technology Holdings plc and certain affiliates. Proceeds from the issuance will be used to redeem in full the outstanding 4.875% Senior Notes due 2027 issued by Seagate HDD Cayman.

The transaction is expected to close on May 27, 2025, subject to customary conditions. PJT Partners acted as financial advisor for the deal.
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ME NEWS 05-13-25
Seagate Reports Strong Fiscal Q3 2025 Results and Ups Guidance

Seagate Technology announced fiscal Q3 2025 revenue of $2.16 billion, up from $1.66 billion a year earlier. GAAP diluted EPS was $1.57 and non-GAAP EPS reached $1.90, supported by gross margin expansion and improved operating leverage. Net income rose to $340 million (GAAP) and $407 million (non-GAAP). Free cash flow totaled $216 million, with $152 million returned to shareholders via dividends. The company also reduced debt by $536 million.

The Board declared a $0.72/share dividend, payable July 8 to shareholders of record on June 25. For Q4 2025, Seagate expects revenue of $2.4 billion ± $150 million and non-GAAP EPS of $2.40 ± $0.20, citing robust demand for HAMR-based storage and confidence in its long-term profitability.
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ME NEWS 04-30-25
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