Fidelity Dividend Growth Fund on Seagate Technology Holdings plc
Thesis
Seagate is one of the two dominant global hard-disk-drive manufacturers and is a large fund overweight. AI-capable data centers are creating very strong demand for HDD storage, supporting rapidly rising sales and strong pricing power. Recent revenue, earnings and profitability exceeded expectations, and management raised financial guidance.
“Exploding demand for HDDs used in AI-capable data centers has led to surging sales and strong pricing power for the company.”