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A Seagate Barracuda internal hard disk drive on a light background
Photo: Investing.com

Seagate Stock Falls 9.2% After Toshiba Capacity Plan

Investing.com2 min read6 sources

Why did Seagate stock fall 9%?

Seagate (STX) stock fell 9.2% on Tuesday to $805.63 after Toshiba's plan to double hard-drive capacity for AI and a reported TDK bidding fight raised fears of looser supply.

Key numbers

Seagate (STX) close, 6 Oct$805.63-9.18%
Western Digital (WDC) close, 6 Oct$411.04-6.93%
Toshiba share of hard-drive market~10%Capacity to double by fiscal 2027
Possible TDK head-unit deal valueSeveral $BSeagate and Toshiba reportedly bidding (per [1])

What happened

Seagate (STX) stock fell 9.2% on Tuesday to $805.63 after Toshiba's plan to double hard-drive capacity for AI and a reported TDK bidding fight raised fears of looser supply. Toshiba, which holds about 10% of the hard-drive market, plans to double its AI data-center drive capacity by fiscal 2027. Bloomberg also reported that Seagate and Toshiba are competing to buy TDK's magnetic-heads unit, which makes the tiny parts that read drive data. Toshiba said the report did not match its understanding, and Western Digital (WDC) still fell 6.9%.

Why it matters

Seagate and Western Digital have surged this year because AI data centers made hard drives scarce, which gave them room to raise prices. More Toshiba supply could ease that shortage and weaken that pricing power. Some analysts called the selloff overdone, saying new capacity takes years to arrive. Control of TDK's parts unit could also decide who can build more drives.

Who this affects

Marketmixed
Medium impact
Storage stocks fell sharply; memory-chip peers like Micron held steadier.
Companybearish
Medium impact
Seagate shareholders lost 9.2% in one day.
Competitorsbearish
Medium impact
Western Digital fell 6.9%; Toshiba's market-share push gains attention.
Industrymixed
Medium impact
More hard-drive supply could ease AI-driven shortage, pressuring prices.

Seagate vs Western Digital, Micron, SanDisk

SeagateSTX$183B-9.2%22.5x+34%
Western DigitalWDC$154B-6.9%20.5x+36%
MicronMU$1.18T—5.9x+256%
SanDiskSNDK$243B—7.8x+175%

As of 2026-10-07

How we got here

  1. Toshiba's plan to double AI hard-drive capacity hits Seagate and Western Digital shares.

  2. Bloomberg reports Seagate and Toshiba are competing to buy TDK's magnetic-heads unit.

  3. Toshiba calls the report inconsistent with its understanding; Seagate closes down 9.18%.

What to watch

  • Seagate's quarterly results, expected around 28 October, may update supply and pricing views.2026-10-28
  • Any confirmed TDK head-unit deal, which would likely face close antitrust review.Q4 2026

Educational content only. Not investment advice.

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