3 Reasons to Buy Seagate

Together, Seagate (NAS: STX) and Western Digital (NAS: WDC) dominate the hard-drive market, holding around 85% of the market share. This supremacy became even more pronounced when floods reduced the industry supply chain, an event that allowed for significant pricing increases for Seagate and the broader HDD market. With shipments approaching normalized levels, many people fear the effect of the PC's downfall, but the fact remains that the rollout of Microsoft's (NAS: MSFT) Windows 8 operating system, along with the growing popularity of Intel's (NAS: INTC) Ultrabook movement, offers a meaningful short-term tailwind. In fact, today a Baird analyst downgraded SanDisk (NAS: SNDK) on the thesis that Ultrabooks containing hybrid drives were outselling those with pure solid-state drives.

With that as a backdrop, Brenton continues an ongoing series discussing both the bull and bear cases for specific stocks, by diving into the bull case for Seagate.

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The article 3 Reasons to Buy Seagate originally appeared on Fool.com.

Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel, Microsoft, and Western Digital. Motley Fool newsletter services recommend Intel and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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