Chip Stock Investor Podcast SOLD OUT: Why Data Centers are Buying Every Seagate Drive Through 2027
Feb 2, 2026
A deep dive into why data centers are snapping up every Seagate drive through 2027. They cover the HAMR transition and the new Exos Mosaic 3+ platforms. Discussion of soaring exabyte shipments, falling price-per-bit, and sold-out capacity with hyperscaler bookings. They also highlight a surge in free cash flow and the storage market’s unexpected comeback.
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Revenue And Volume Diverge
- Seagate's Q2 FY2026 revenue rose 22% YoY with gross margins near 42%, driven by data-center demand.
- Exabyte shipments grew faster than revenue, reflecting falling price-per-bit despite higher volumes.
Data Centers Dominate Demand
- Data-center (nearline) sales now drive ~80% of Seagate's revenue and lifted exabyte shipments 31%.
- Price per bit still fell about 4% YoY, so capacity gains haven't fully offset bit-price deflation.
Supply Constraints Give Pricing Leverage
- Seagate says existing supply commitments are satisfied but new-product supply is constrained.
- They set pricing by comparing constrained supply to demand rather than giving customers full control.