New York, Jan 29, 2026, 10:54 EST — Regular session
- Seagate shares slipped in early trading following Wednesday’s record surge.
- Earnings and guidance highlighted a surge in AI-driven demand for data center storage.
- Attention shifts to pricing, supply distribution, and when the next dividend will be set.
Seagate Technology Holdings plc (STX) shares slipped 1.1% to $438.09 by late morning Thursday, following a volatile start. The stock swung between $437.82 and $457.18 after kicking off the day at $450.
The drop follows Seagate’s 19% surge to a record high of $441.84, fueled by stronger-than-expected earnings and optimism around AI-driven data center demand. Western Digital climbed 10%, Sandisk was up 7.7%, and Micron gained 5.2% in the wake of that momentum, according to Barron’s. (Barron’s)
This is significant now as storage demand is shifting alongside the AI expansion, not just chips. Seagate, one of the two major hard-disk vendors for cloud providers, often sets the tone on pricing and capacity trends.
Late Tuesday, Seagate projected March-quarter revenue at $2.90 billion, with a $100 million margin either way, and adjusted earnings of $3.40 per share, plus or minus 20 cents. These non-GAAP figures strip out items like stock-based compensation and exceed analyst forecasts gathered by LSEG. For the December quarter, the company posted revenue of $2.83 billion and adjusted EPS of $3.11. CEO Dave Mosley highlighted that AI is pushing data centers to demand storage on an “exabyte-scale” — meaning billions of gigabytes. (Reuters)
During the earnings call, Mosley noted that Seagate’s nearline capacity—enterprise hard drives designed for data centers—is “fully allocated through calendar year 2026,” with pricing set to follow demand. Morgan Stanley analyst Erik Woodring told management demand is “clearly outpacing supply.” CFO Gianluca Romano added the company is “executing a little bit better” than expected as the product mix shifts. (The Motley Fool)
Investors are keeping an eye on the rollout of HAMR—heat-assisted magnetic recording—which uses targeted heat to boost data capacity on each disk. The gamble is straightforward: larger drives, slower unit growth, and tighter supply, assuming the technology delivers as promised.
That said, the situation works both ways. Should cloud spending slow down or supply increase quicker than anticipated, prices could fall and margins take a hit—particularly after the recent jump in shares. Hardware companies also face headline risks tied to shifting trade and tariff policies.
Seagate’s board announced a quarterly dividend of $0.74 per share, set to be paid on April 8 to shareholders recorded by March 25. The company’s guidance for the March quarter factors in only a minimal expected impact from the global tariff measures unveiled so far. Investors will be focused on the March quarter results for clues on whether demand and pricing remain steady, with March 25 marking the next key date. (Seagate)
