Seagate Technology Holdings PLC (NASDAQ: STX) saw its shares rise by 0.30% to $808.08 in after-hours trading on Tuesday. This follows a regular trading session where the stock closed at $805.63, reflecting a decline of 9.18%, according to Benzinga Pro data.
The trading volume for Seagate on Tuesday was notably high, reaching 7.28 million shares, which is approximately 1.8 times its average volume of 3.96 million shares.
Toshiba’s Supply Threat Spooks Investors
The fluctuations in Seagate’s stock are tied to concerns regarding Toshiba’s announcement of a $380 million investment in its Philippine operations. This investment is expected to nearly double hard disk drive (HDD) capacity for AI data centers by the conclusion of fiscal 2027, reports suggest.
Morgan Stanley indicated that the HDD market is likely to remain undersupplied until 2028. According to estimates from TD Cowen, Toshiba’s planned expansion may add around 75 exabytes to a current shortage of approximately 300 exabytes.
Seagate’s HAMR Lead
To maintain its competitive edge, Seagate is focusing on advancing its technology. The company’s heat-assisted magnetic recording (HAMR) Mozaic platform can support drives of up to 44TB, with aspirations for 100TB drives. Seagate reported that two major hyperscalers have approved its drives for production-scale deployments, confirming successful testing for large-scale use.
Additionally, Seagate and Toshiba are reportedly vying to acquire TDK’s HDD magnetic-head business, a deal that could be valued in the billions. TDK supplies heads to the major HDD manufacturers, making the acquisition of this business strategic for the winning company’s control over the supply chain. TDK has not yet made a decision regarding this potential deal.
Trading Metrics, Technical Analysis
Seagate Technology Holdings has a market capitalization of $176.60 billion, and its stock has experienced a 52-week high of $1,145 and a low of $209.
The Relative Strength Index (RSI) for STX is recorded at 42.21. Over the past year, the stock has increased by 231.77%. Currently, STX is trading at about 64% of its 52-week range, indicating it is closer to its annual high than to its low.
As of Tuesday, STX closed at $805.63, down 9.18%, according to the latest data.
