Toshiba's $380M HDD Capacity Push Sends Western Digital and Seagate Down 10%
WDC has more than doubled off its 52-week low of $112.52 on elevated volume (3.3× avg).
Summary
Western Digital and Seagate both fell 10% after Nikkei reported Toshiba plans to double HDD production capacity for AI data centers in fiscal 2027, investing about $380 million in its Philippines facility. Toshiba aims to grow HDD market share from around 10% to as much as 30%, which could ease the supply shortage that has driven record profits for the two leaders. Analysts are skeptical Toshiba can triple share that quickly, noting Seagate and Western Digital plan a combined $1.7 billion in capex for fiscal 2027, and long-term agreements limit near-term pricing impact. The report is unconfirmed and Toshiba declined to comment, but the threat of added supply is a direct challenge to the pricing power that has made these stocks among the hottest in the S&P 500 since mid-2025.
At the time of this announcement, WDC was trading at $415.65 on NASDAQ in the Technology sector, with a market capitalization of approximately $149.7B. The 52-week trading range was $112.52 to $799.87. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.