Sands Capital Management, LLC - Technology Innovators on Seagate Technology
Thesis
Seagate is benefiting from improving supply-demand conditions in mass-capacity storage. AI workloads require more data retention and retrieval, increasing storage demand while industry supply remains constrained. First-quarter revenue rose 44 percent and non-GAAP gross margin reached a record 47 percent. Sands expects rising demand and 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.”