Seagate AI data center demand tightens nearline hard-disk supply, fueling stock surge
STX•Seagate reported fiscal Q1 2025 revenue growth of 49.1%, while data center revenue reached $2.9 billion of $3.6 billion in the June 2026 quarter, up 57% year over year. Its July 28, 2026 guidance targeted $4.1 billion in revenue, with most nearline output committed into calendar 2028.
1. Demand and supply
Seagate’s AI-linked rally was described as reflecting a nearline storage shortage driven by cloud data center buildouts. Management pointed to a lead cloud customer on Oct. 22, 2024; nearline revenue nearly doubled in the December 2024 quarter.
2. Revenue and guidance
Data center revenue reached $2.9 billion of Seagate’s $3.6 billion total in the June 2026 quarter, up 57% year over year. Guidance issued July 28, 2026, targeted $4.1 billion in revenue, and most nearline output was committed into calendar 2028.
