Western Digital, Seagate Stock Slide On AI Hard-Drive Competition Report
Seagate and Western Digital shares fell sharply after reports that Toshiba plans to double its hard disk drive supply to address AI chip memory gaps. Seagate dropped 12% and Western Digital fell 10% as investors feared an easing of the AI storage shortage. However, shares later rebounded, with Western Digital jumping 7% and Seagate climbing 5% after Bernstein dismissed the supply scare as a storm in a teacup. Morgan Stanley, Rosenblatt, and Citi maintained positive ratings, arguing Toshiba is unlikely to close the industry supply gap.
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- ✓ Toshiba plans to double its hard disk drive supply to fill an AI chip memory gap.
- ✓ Seagate shares sank 12% and Western Digital shares dropped 10% following reports of Toshiba's expansion.
- ✓ Western Digital shares later jumped 7% and Seagate shares climbed 5%.
- ✓ Morgan Stanley, Rosenblatt, and Citi maintained positive ratings for STX and WDC.
What changed
Wall Street analysts from Morgan Stanley, Rosenblatt, and Citi have pushed back against the initial selloff, sparking a partial recovery in stock prices.
Live updates
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Seagate and Western Digital Stocks Volatile After Toshiba Expansion Report
Seagate and Western Digital shares fell sharply after reports that Toshiba plans to double its hard disk drive supply to address AI chip memory gaps. Seagate dropped 12% and Western Digital fell 10% as investors feared an easing of the AI storage shortage. However, shares later rebounded, with Western Digital jumping 7% and Seagate climbing 5% after Bernstein dismissed the supply scare as a storm in a teacup. Morgan Stanley, Rosenblatt, and Citi maintained positive ratings, arguing Toshiba is unlikely to close the industry supply gap.
Why it matters
AI data centers require massive amounts of storage, creating a supply shortage that previously supported HDD prices. Increased production from a third major player like Toshiba threatens the market share and pricing power of the dominant duo.
What is confirmed
- Toshiba plans to double its hard disk drive supply to fill an AI chip memory gap.
- Seagate shares sank 12% and Western Digital shares dropped 10% following reports of Toshiba's expansion.
- Western Digital shares later jumped 7% and Seagate shares climbed 5%.
- Morgan Stanley, Rosenblatt, and Citi maintained positive ratings for STX and WDC.
What to watch next
- Official confirmation of Toshiba's production timelines
- Quarterly earnings reports from Seagate and Western Digital regarding AI demand
- Further analyst revisions on the global HDD supply gap
confidence 90%Sources used for this update (10)
- Barron's — Seagate Stock and Western Digital Tumble as Investors Worry AI Shortage Will Ease
- Nikkei Asia — Toshiba to double hard disk drive supply to fill AI chip memory gap
- MarketWatch — Why Western Digital and Seagate are seeing big stock drops today
- Investor's Business Daily — Western Digital, Seagate Stock Slide On AI Hard-Drive Competition Report
- Yahoo Finance — Seagate Sinks 12%, Western Digital Down 10% as Toshiba Plans to Double Hard Disk Output
- contents.premium.naver.com — 📬 미국 주식 데일리 종목 분석 (2026.10.05)
- stocktwits.com — WDC, STX Stocks Slide Up To 10% — What’s The Toshiba Connection?
- finance.yahoo.com — Western Digital Jumps 7%, Seagate Climbs 5% as Bernstein Calls Toshiba Selloff a Storm in a Teacup; SanDisk Inches Higher
- finance.yahoo.com — STX, WDC Stocks Sink On Toshiba’s Reported Plan To Double AI ...
- marketspy.com — Western Digital, Seagate Shares Fall on AI Hard-Drive ...
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