Nikkei: Toshiba plans to double HDD capacity for AI data centers by FY2027; Seagate -10%, Western Digital -7% premarket
What happened
Nikkei reported that Japan's Toshiba plans to double production capacity for hard-disk drives used in data centers during its fiscal 2027, investing roughly $380 million. Investors took it as a direct threat to the Seagate/Western Digital duopoly: Seagate plunged about 10% in premarket trading to ~847.86 and Western Digital fell about 7% to below ~430. The market is pricing in the risk that the supply shortages underpinning both companies' pricing power and record AI-storage margins get relieved by a third competitor.
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Start your free 14-day trialWho’s affected
- Seagate (STX): down ~10% premarket to ~847.86; threatened with breaking below its 50-day moving average as it exits a 14-week consolidation
- Western Digital (WDC, recently rebranded WD): down ~7% premarket below ~430; already 42% below its June high and under its 50-day
- Toshiba: the capacity builder — potential share gainer in a duopoly market, though execution and timing are unproven
- AI storage/infrastructure complex: supply-tightness premium unwinds across HDD-adjacent names