Seagate and Western Digital Drop 10.2% on Toshiba’s…
By Tobi Opeyemi Amure
AI summary of the source article
Shares of Seagate Technology and Western Digital fell by 10.21% and 10.22% respectively on Friday, Oct. 2, 2026. The decline followed a Nikkei Asia report stating Toshiba plans to spend roughly 60 billion yen ($380 million) to double its hard-disk capacity for AI data centers within fiscal 2027 from 2025 levels, centered in the Philippines. Toshiba currently holds just over 10% storage capacity share and targets 30% in the medium term. The selloff reflected a repricing of nearline capacity scarcity premiums rather than declining AI demand, as future competitive supply emerges. Toshiba had not confirmed the expansion plan.
Why it matters
The market reaction demonstrates how future competitive supply additions can compress the scarcity premiums and margins currently enjoyed by incumbent hard-disk manufacturers. It impacts how buyers negotiate long-term nearline storage contracts extending past 2028.
Key facts
- Seagate closed down 10.21% at $848.99 and Western Digital closed down 10.22% at $415.29 on Friday, Oct. 2, 2026.
- Nikkei Asia reported Toshiba plans a roughly 60 billion yen ($380 million) investment in the Philippines to double AI data-center hard-disk capacity within fiscal 2027.
- Toshiba currently holds just over 10% of storage capacity share and aims for 30% in the medium term, though the company had not confirmed the plan.