Sands Capital Management, LLC - Select Growth on Seagate Technology
Thesis
Seagate is a global leader in mass-capacity data storage and is benefiting from improving supply-demand conditions for hard disk drives. AI-related workloads are increasing the need for data retention and retrieval while industry supply remains constrained. First-quarter revenue rose 44 percent year over year and non-GAAP gross margin reached a record 47 percent. Sands expects rising demand, limited supply response, and stronger pricing discipline to support durable earnings growth.
“We believe this combination of rising demand, limited supply response, and improving pricing discipline will support durable earnings growth.”