Not Nvidia. Not Broadcom. This Storage Stock Could Be 2027's Hidden AI Winner.
2026-10-14 10:30
•Rick Orford •The Motley Fool
••••• ••• Axe Cap view
Seagate: The Quiet AI Storage Play to Watch
Seagate’s booming storage business offers a less crowded way to tap AI infrastructure demand through 2027 and beyond.
Everyone talks Nvidia and Broadcom when AI comes up. But the real backbone of AI growth is data—and lots of it. That’s why Seagate’s 34% revenue jump feels more grounded. Their nearline hard drives, which store vast amounts of data just a bit slower than traditional drives, are allocated through 2027, signaling solid demand visibility. The upcoming Mozaic 4+ and Mozaic 5+ drives promise massive capacity boosts, crucial as cloud providers suck up more storage for AI training and inference. For South Africa, this sheds light on the kinds of global hardware trends underpinning tech-heavy firms like Naspers and Prosus, whose valuations rely heavily on AI growth. If USD/ZAR stays stable or weaker, it’s a double win for local investors gaining exposure to tech themes via these counters. The caveat? AI hype can shift quickly, and a setback in cloud capex or a faster pivot to more efficient storage tech than hard drives could clip Seagate’s wings. this is just our opinion and not financial advice
Buy Naspers or Prosus selectively to ride the broader AI boom, given their exposure to global tech trends fueled by hardware demand like Seagate’s. Also, watch USD/ZAR for currency tailwinds that could amplify returns for local investors.
- Naspers
- Prosus
- USD/ZAR
- Faster shift to alternative storage technologies reducing hard-drive demand
- A downturn in cloud providers’ infrastructure spending slowing Seagate’s growth
7/10
Seagate Technology is positioned as an overlooked AI beneficiary, with 34% revenue growth driven by data center demand for high-capacity storage. The company's nearline hard drive supply is allocated through 2027, and its next-generation Mozaic 4+ drives (up to 44TB) are entering production. Upcoming Mozaic 5+ qualification shipments in late 2027 represent another key milestone for investors to monitor.
Our take is based on reporting first published by The Motley Fool.