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Seagate, Western Digital stocks slip as Toshiba's AI storage push rattles sector
Yahoo Finance • • business
Key Points:
- Seagate Technology (STX) and Western Digital (WDC) stocks dropped 5% and 4% respectively amid volatility in the hard disk drive sector.
- The decline followed a Nikkei report that Toshiba plans to increase production to capture a larger share of the AI infrastructure storage market.
- Despite the sell-off, some skepticism remains about whether Toshiba's expanded capacity will resolve the current drive shortage.
- Bloomberg reported that Seagate and Toshiba are competing to acquire TDK Corp.'s hard disk drive magnetic-head business due to rising AI data center storage demand.
- Year-to-date, Seagate stock has surged over 200%, and Western Digital has gained more than 140%, driven by the AI infrastructure build-out and resulting memory chip shortages.
