Seagate and Western Digital Shares Drop as Report Suggests Toshiba Will Increase Hard Disk Drive Supply
Shares of Seagate (STX) and Western Digital (WDC) fell in premarket trading on Friday after a report from Nikkei Asia indicated that Toshiba may significantly increase its hard disk drive supply. The Japanese company is reportedly planning to invest approximately $380 million, potentially doubling the amount of HDDs available in the market. The news raised concerns about increased competition and potential downward pressure on prices for Seagate and Western Digital, which are major players in the storage industry alongside Toshiba. Market participants reacted negatively, with STX dropping 7% and WDC falling by 5%, reflecting investor worries over margin compression due to higher HDD supply.
Topics: hard disk drives HDD supply increase Toshiba investment