Western Digital (WDC) and Seagate Technology (STX) shares fell significantly in pre-market trading on Friday, October 2, 2026. Western Digital’s stock dropped around 5% to 8% after Nikkei Asia reported Toshiba plans to invest approximately $380 million in hard disk drive (HDD) manufacturing for AI data centers.
Toshiba aims to double its HDD manufacturing capacity by its 2027 fiscal year. Investors are concerned the added supply could disrupt a market marked by tight supply and strong pricing power, which has benefited Western Digital.
The increased competition could put pressure on HDD prices and hurt Western Digital’s profitability. The company is a major player in the HDD market.