Catalog product

Seagate (STX) and Catalog to Develop DNA-Based Storage Platform

Seagate Technology Holdings plc STX and Catalog Technologies Inc are partnering to accelerate the development of automated and scalable DNA-based compute and storage platforms.

The partnership aims to use Seagate’s “lab-on-chip” technology to minimize the amount of “chemistry” required for DNA-based storage and computation. The Seagate platform will allow users to test small droplets of synthetic DNA using smaller amounts of chemicals and requiring less energy, Catalog added.

The droplets will be processed through various tanks on the Seagate platform. Chemical reactions are created when DNA from multiple sources is combined to perform various computational tasks, including process optimization, machine learning, research, and analysis.

Seagate Technology Holdings PLC Pricing and Consensus

Seagate Technology Holdings PLC Price Consensus Chart | Seagate Technology Holdings PLC listing

The research will open perspectives for future generations of DNA-based storage and computing platforms in various form factors like desktop and Internet of Things versions.

Seagate is well positioned to take advantage of the strong demand for computing applications such as advanced analytics, artificial intelligence and machine learning. In addition to the development of DNA-based storage, Catalog has already invented ways to integrate DNA into these computing applications, thereby reducing the complexity and cost of storage systems.

According to a report by Insight Partners, the U.S. DNA Digital Data Storage Market is expected to grow from $21.40 Million in 2021 to $711.92 Million by 2028 at a CAGR of 65%. The industry stands to benefit from the high storage density and durability of such DNA-based storage compared to silicon-based storage, the report adds.

Seagate is investing heavily in product development to meet the growing demand for high-capacity storage solutions. The growing demand for thinner laptops and tablets in recent years has created an ideal market for SSDs.

Recently he spear Exos X 2U12, 2U24, and 5U84 that use an erasure coding method called ADAPT (Advanced Distributed Autonomic Protection Technology), which reduces data redundancy overhead and speeds recovery time with fast system rebuilds.

The Exos X system combines ADAPT with Seagate’s Autonomous Drive Regeneration, which automatically monitors and rebuilds drives in place, reducing the need for manual swapping. As a result, it helps data centers reduce IT waste and administrative burden.

However, the company’s performance is affected by inflationary pressures, shortages of components other than hard drives, and uncertainty in global economic conditions, particularly in traditional end markets.

The company recently cut its outlook for the current quarter due to the deteriorating macroeconomic environment, particularly in some Asian markets. Seagate noted that current cautious customer spending patterns, including global enterprises, OEMs and some domestic cloud customers, will likely affect demand for mass capacity solutions in the near term.

The company now expects revenue of $2.1 billion (+/- $100 million) compared to the previous revenue forecast of $2.5 billion (+/- $150 million).

Currently, Seagate carries a Zacks Rank #5 (Strong Sell). The shares lost 24.3% compared to the Of the industry down 61.3% over the past year.

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Actions to consider

Some top-ranked stocks in the broader tech space are Cadence Design Systems CDNS, badger meter BMI and Arista Networks A NET. Arista Networks and Cadence Design Systems currently sport a Zacks Rank #1 (Strong Buy), while Badger Meter carries a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

The Zacks consensus estimate for CDNS 2022 earnings is pegged at $4.11 per share, up 5.7% over the past 60 days. The long-term earnings growth rate is expected to be 17.7%.

Cadence’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 9.8%. Shares of CDNS have jumped 3.6% over the past year.

The Zacks consensus estimate for BMI’s earnings in 2022 is pegged at $2.30 per share, up 6% over the past 60 days.

Earnings at Badger Meter have exceeded the Zacks consensus estimate in three of the previous four quarters, averaging 12.6%. BMI shares have lost 5.7% of their value over the past year.

Zacks’ consensus estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, up 9.8% over the past 60 days. The long-term earnings growth rate is expected to be 18.6%.

Arista Network’s earnings have exceeded Zacks’ consensus estimate for the past four quarters, averaging 10.1%. ANET shares have risen 37.1% over the past year.

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