William Blair Large Cap Growth Fund on Seagate Technology
Thesis
Seagate is a leading HDD manufacturer in a three-player oligopoly and supplies high-capacity nearline drives used for data-center storage. The fund initiated the position because AI workloads, longer data-retention requirements, physical AI data generation and tighter data-sovereignty rules should support durable HDD demand. Results showed faster revenue growth, record margins and higher profitability as data-center demand remained strong and HAMR-based Mozaic drives ramped. Multi-year cloud and nearline contracts extending into 2027, a higher long-term revenue-growth target and debt reduction added confidence, and the fund added to the position.
“We initiated a position early in the quarter and believe the company will benefit from durable demand for AI data center storage”