Seagate forecasts strong revenue growth despite execution risks
- Seagate has experienced severe stock declines, losing 58.2% during the 2022 crisis.
- The company announced upcoming drives with capacities exceeding 40 TB and aims for 100 TB by 2030.
- Investors are weighing the risks and potential for significant stock corrections amidst economic uncertainties.
In the United States, Seagate Technology Holdings PLC has faced significant stock volatility due to economic pressures, particularly during the inflation crisis in 2022 when the stock lost 58.2% of its value at its lowest point. The company's performance has consistently lagged behind the S&P 500 during downturns, raising concerns about its resilience in the face of potential future recessions. Investors are now contemplating the implications of Seagate's current valuation, which is significantly above its three-year averages. At an investor conference in June 2025, Seagate unveiled plans for its 40 TB HAMR drives, with ambitions for even larger capacities by 2030. The company is also forecasting Q4 adjusted EPS between $2.20 and $2.60 and revenue in the $2.25–$2.55 billion range, alongside a projected 38% revenue growth in FY 2025. Despite optimism regarding new technological advancements, there are inherent risks if demand does not meet expectations, prompting investors to consider their next moves as the market continues to fluctuate.