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Seagate logo on the wall of a company building under a blue sky
Photo: Parameter

Seagate Stock Falls 14% After Toshiba Expansion Report

Investing.com2 min read6 sources

Why is Seagate stock down today?

Seagate (STX) stock fell about 14% to near $808 on Friday after Nikkei reported Toshiba will spend $400 million to double hard-drive capacity, raising fears of more competition.

Key numbers

Seagate (STX) price$808-14% on the day
Western Digital (WDC) price$397-14% on the day
Toshiba planned spend¥60Babout $380M–$400M, doubling capacity by fiscal 2027
Toshiba hard-drive market sharejust over 10%target 30% medium term
Seagate 2026 gain before drop+240%Western Digital +170%

What happened

Seagate (STX) stock fell about 14% to near $808 on Friday after Nikkei reported Toshiba will spend $400 million to double hard-drive capacity, raising fears of more competition. Western Digital (WDC) also fell about 14%, to roughly $397. Toshiba, the third big hard-drive maker, wants to lift its share of the market from just over 10% to 30%. Both stocks had soared this year, Seagate by about 240% and Western Digital by about 170%, so they dropped fast on any sign of new supply.

Why it matters

Seagate has been one of the year's big winners because AI data centers are buying hard drives faster than makers can build them. Toshiba's plan could put more drives on the market in a couple of years, which may ease shortages and slow price increases. Citi said the market may be overstating the risk, because Toshiba relies on outside suppliers for key parts.

Who this affects

Marketbearish
Medium impact
Investors in AI storage stocks face sharper price swings.
Companybearish
High impact
Seagate shareholders lost about 14% in one day.
Competitorsbearish
Medium impact
Western Digital fell similarly; Sandisk fell far less.
Industrymixed
Medium impact
More supply could ease shortages and slow price gains.

Seagate vs Western Digital, Sandisk

SeagateSTX-13.9%+240%
Western DigitalWDC-13.4%+170%
SandiskSNDK-3.5%—

As of 2026-10-02

How we got here

  1. Nikkei reports Toshiba will spend ¥60B to double hard-drive capacity by fiscal 2027.

  2. Seagate and Western Digital each drop about 14% in US trading.

  3. Toshiba targets mass production of 65-terabyte-class hard drives, then 100-terabyte-class later.

What to watch

  • Seagate and Western Digital comments on demand and supply deals in their next earnings reports.Q4 2026
  • Whether Toshiba secures enough outside-sourced parts, such as disk media and read heads, to expand.2027

Educational content only. Not investment advice.

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