Overview
- Seagate's CEO told investors that recording‑head wafer lead times now exceed nine months and finished drives add roughly another quarter, a change management says prevents quick plant expansion.
- The comments prompted a sharp market reaction, sending Seagate shares down about 7.5% and pulling other storage names lower as investors reassessed upside under supply limits.
- Management stressed a cautious capacity plan that ties tool additions to technology steps rather than new factories and said next‑generation HAMR and Mozaic drives have shipped in the millions and won major cloud qualifications.
- Seagate reported very strong fiscal Q3 performance, including 44% year‑over‑year revenue growth and a record non‑GAAP gross margin near 47%, and it guided fiscal Q4 revenue to $3.45 billion with non‑GAAP EPS of $5.00.
- Analysts are split: some see the lead‑time bottleneck as proof of tight demand and pricing power, while others warn that the stock's high valuation leaves little room for any miss when Seagate reports July quarter results.