Why Is Seagate Technology Stock Sinking Friday? - TradingView
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Seagate Technology Holdings PLC STX stock fell more than 13% Friday even as the broader market moved higher. The Nasdaq gained more than 1%, while the S&P 500 rose 0.91%. The selloff followed reports that Toshiba plans to double production capacity for hard disk drives used in artificial intelligence data centers by fiscal 2027. Toshiba plans to invest about 60 billion yen, or $380 million, to expand facilities in the Philippines. The move raised concerns that additional capacity could eventually pressure HDD pricing. However, the supply picture remains tight for now. Nearline HDD demand has surged as AI data centers require more storage. Seagate said in January that its nearline capacity for 2026 was already sold out. Solid-state drives offer faster performance but remain more expensive than HDDs. That cost gap continues to support hard-drive demand for large-scale data centers. Seagate Technical AnalysisSeagate remains in a longer-term uptrend. The stock is trading 24.6% above its 200-day simple moving average of $650.52. Its 50-day SMA also remains above the 200-day SMA. That typically signals a bullish longer-term trend. However, the short-term setup looks weaker.
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