Seagate Technology CFO Gianluca Romano stated that demand for mass storage is driven by the early stages of artificial intelligence infrastructure investment, with significant growth expected from public-cloud customers and enterprise data centers. Speaking at the Goldman Sachs Communacopia + Technology Conference, Romano noted that the data requirements from sectors like video AI and robotics are set to increase long-term storage demand.
Seagate anticipates a mid-20% compound annual growth rate in exabyte shipments over the next three to four years, primarily through higher-capacity drives. Significant developments include the rollout of 30-terabyte HAMR drives to major hyperscale customers and plans for 50-terabyte models by 2027. Currently, data-center products account for approximately 80% of Seagate’s revenue, supported by strong demand that has led to improved profitability and margins.
Romano also highlighted that Seagate has reduced its debt significantly and is focused on share repurchases, expecting a more favorable cash flow position for buybacks starting in 2027. With ongoing investment in technology and capital, Seagate aims to maintain a disciplined approach to manage potential shifts in market demand.
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