Jan 21 (Reuters) - Seagate Technology ( STX ) on Tuesday

forecast third-quarter revenue below analysts' estimates,

expecting sluggish sales for its storage devices used in

personal computers as the PC market struggles to bounce back.

Despite the addition of on-device AI features and an

anticipated Windows 11 refresh cycle, end-market demand for PCs

has remained muted as the market emerges from one of its worst

slumps in decades.

Seagate ( STX ) expects revenue of $2.10 billion, plus or minus $150

million, for the third quarter, compared with analysts' average

estimates of $2.19 billion, according to data compiled by LSEG.

Global PC shipments rose about 1% to 245.3 million units in

2024 - marking the second consecutive year shipment volume has

dipped below 250 million, according to research firm Gartner.

Seagate ( STX ) expects third-quarter adjusted profit of $1.70 per

share, plus or minus 20 cents, compared with estimates of $1.69.

The dour forecast also casts a shadow over expectations

of normalization in memory device inventory levels, after a

supply glut over the last two years drove cloud providers to cut

back on orders in a bid to clear existing inventory.

Analysts have said that in 2025, cloud providers' growing

investment in infrastructure to support generative AI

development could help buoy sales for Seagate ( STX ), which supplies

disk drives used to store vast amounts of data.

Seagate ( STX ) reported revenue of $2.33 billion for the second

quarter ended Dec. 27, largely in line with estimates of $2.32

billion.