Seagate Technology shares rise following Microsoft and Broadcom milestone

Seagate Technology (STX) shares rose 3.92% to $655.19 following a significant storage technology milestone. Microsoft Azure has qualified Seagate’s Heat-Assisted Magnetic Recording (HAMR) and Shingled Magnetic Recording (SMR) drives using Broadcom infrastructure.

Seagate’s Mozaic drives have become the first SMR drives to secure approved vendor status on Broadcom’s list. This interoperability, facilitated by Broadcom’s host bus adapter infrastructure, is designed to help data centers manage larger fleets of hard drives and support higher storage density for cloud and artificial intelligence workloads.

This development comes as Seagate prepares to report its third-quarter earnings. Analysts are watching for revenue growth, with market expectations suggesting a 57.5% year-on-year increase, compared to a 48.5% increase in the previous quarter.