Unrelenting AI Demand Is Turning the Tide for Seagate and the HDD Industry

Seagate is a leader in the hard disk drive, or HDD, market. HDDs have become a concentrated market, with only three players remaining: Western Digital, Seagate, and Toshiba. Seagate and Western Digital have jostled back and forth for top share over the last decade, while Toshiba remains a distant third. HDDs are being phased out in key end markets, in favor of solid-state drives, or SSDs, but we still see a future for HDDs within data centers. The economics (total cost of ownership) still favor HDDs over SSDs for workloads where controlling costs is important while immediate read access is not. This is commonly referred to as “nearline” storage, which we expect will make up almost all of Seagate’s business over time.