Sony and Seagate to Increase HDD Capacity to 30TB, Aim to Meet Growing Data Center Demands
Portfolio Pulse from Anusuya Lahiri
Sony Group Corp (NYSE:SONY) and Seagate Technology Holdings Plc (NASDAQ:STX) are collaborating to double HDD capacity to 30TB to meet the increasing demands of data centers. Sony will invest $33 million in expanding facilities for mass production of advanced laser diodes starting May. This technology aims to address the growing data needs by enabling denser data packing, promising to double storage capacity while reducing space and electricity consumption by 40%. Sony reported a 22% year-on-year sales growth in Q3 FY23, with plans to list its financial arm in October 2025. However, Sony's stock was downgraded by Macquarie analyst Damian Thong from Outperform to Neutral.

February 16, 2024 | 2:05 pm
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POSITIVE IMPACT
Seagate Technology's collaboration with Sony to manufacture advanced laser diodes for 30TB HDDs positions it at the forefront of HDD innovation, addressing the surging data center demands.
Seagate's involvement in the production of 30TB HDDs with Sony's advanced laser diode technology is a significant positive development. It directly aligns with the growing needs of data centers, potentially boosting Seagate's market position and stock performance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Sony's collaboration with Seagate to double HDD capacity to 30TB and its $33 million investment in production facilities highlight its commitment to innovation and meeting data center demands. Despite positive Q3 FY23 results, Sony's stock was downgraded by Macquarie.
Sony's strategic moves to expand HDD capacity and invest in advanced technology are positive for long-term growth. However, the short-term impact is neutral due to the stock downgrade by Macquarie, reflecting market skepticism or other external factors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90