Western Digital Stock Falls Amid Reports of Toshiba's Production Expansion
Western Digital (WDC) saw its stock drop by over 10% on Friday amid reports that rival company Toshiba is planning a $400 million investment to double its hard disk drive production capacity. The expansion, focused in the Philippines and targeting AI-related storage markets, has raised concerns among investors about potential market share losses for Western Digital. Currently, Western Digital holds over 40% of the global HDD market alongside Seagate Technology (STX), while Toshiba controls around 17%. Analysts suggest that doubling production could elevate Toshiba's position to second place in the industry. This move also raises concerns about price competition and potential profit margin compression for Western Digital. Despite these risks, some analysts argue that Western Digital’s stock is undervalued at under 18x earnings, suggesting today’s sell-off may be an overreaction.
Topics: hard disk drives Toshiba expansion Western Digital stock drop