Seagate Falls 14.6% and Western Digital 13.5% After Toshiba…
By Abdelaziz Fathi
AI summary of the source article
Seagate fell 14.59% and Western Digital declined 13.51% on Friday following a Nikkei Asia report that Toshiba plans to invest approximately ¥60 billion, or $380 million, to double its hard-disk drive capacity for AI data centers by fiscal 2027. Toshiba is targeting a 30% market share measured by storage capacity, up from just over 10%, threatening to disrupt the tight supply environment that allowed Seagate and Western Digital to raise prices. While the stock selloff reflected concerns over future pricing power, analysts from Citi and LYNX Equity Strategies questioned whether Toshiba's reliance on external component suppliers might limit its ability to materially expand finished drive supply.
Why it matters
Toshiba's expansion could introduce significant new capacity into an HDD market dominated by Seagate and Western Digital, potentially weakening their pricing power with hyperscale AI data centers.
Key facts
- Seagate fell 14.59% to $807.62 and Western Digital dropped 13.51% to $400.07 on Friday.
- Toshiba plans to invest roughly ¥60 billion ($380 million) to double HDD capacity by fiscal 2027 and target a 30% market share.
- Citi analysts noted Toshiba relies on third-party suppliers for key components like media and recording heads, which could bottleneck its expansion.