What happened: Seagate Technology (STX) stock fell 5% in early trading Tuesday, while Western Digital (WDC) was also down 4%.
What’s behind this move: The hard drive sector has been volatile in recent days after Nikkei reported last week that Toshiba was preparing to increase production to capture a larger share of the storage market for AI infrastructure.
Shares of rivals fell on the news, but skepticism has emerged in recent days that the sale was exaggerated and that increasing Toshiba’s manufacturing capacity won’t solve the drive shortage.
In another development in the field, Bloomberg reported late Monday that Seagate and Toshiba are competing for TDK Corp.’s hard drive magnetic head business. amid booming demand for AI data center storage.
Toshiba began negotiations with TDK in the spring, while Seagate submitted a higher offer this summer, according to the report citing people familiar with the matter.
821.42 -65.67 (-7.40%)
At 11:08:36 a.m. EDT. Open market.
STX WDC ^GSPC
What else do you need to know: These developments come as the growth of AI infrastructure has fueled a shortage of memory chips, sending names in the sector soaring this year.
Seagate stock is up more than 200% year to date, while Western Digital has gained more than 140%.
Ines Ferre is a senior business reporter for Yahoo Finance, covering the U.S. stock market, publicly traded companies and commodities.
Click here for in-depth analysis of the latest stock market news and events that move stock prices.
Read the latest financial and business news from Yahoo Finance
Gn bussni
