Seagate drops ~5% as the red-hot AI storage trade hits a… — STX

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Both companies sell storage products to cloud and data center customers, and both rely heavily on large cloud buyers for a big share of sales. Western Digital’s filing says it sells storage devices and solutions, with Cloud representing 88% of revenue, so it fights Seagate directly for the same large storage deals.

Seagate drops ~5% as the red-hot AI storage trade hits a reality check

As of Jun 23, 2026

For informational purposes only.

Summary

Seagate fell about 5% today on heavier-than-usual trading as part of a broader selloff in AI and tech stocks, even though its underlying business story hasn’t suddenly changed. After a near-300% surge this year, the stock is now bumping up against worries that a lot of good news is already priced in, making investors quicker to lock in profits when the tech sector wobbles. Higher-for-longer interest rates and concerns about debt-fueled AI spending add another layer of caution around a company that both sells into the AI buildout and carries significant debt. For a watcher, today looks more like a mood swing and a reset of expectations than a fundamental collapse, with the key questions now being how AI data-center spending and Seagate’s balance sheet hold up if the tech pullback continues.

Seagate cools off with tech, but the bigger story is expectations, not collapse

Summary of the day

Seagate closed around $1,039, down about 5% from yesterday, after opening lower, dipping near $983, and then clawing back some of the loss. Trading volume was roughly a quarter higher than usual, which points to a busy day of both profit‑taking and dip‑buying. The drop came as AI and tech stocks broadly sold off, with investors questioning how much they’re willing to pay for the whole “AI buildout” theme. Under the hood, Seagate’s business hasn’t suddenly broken; today was mostly about cooling off a very hot, very expensive stock in a shaky tech tape.

What this means in plain language

If you strip away the tick-by-tick noise, today was basically: “AI and tech had a rough day, and Seagate is one of the poster children for that trade.” The stock is still up roughly 300% this year, so a 5% down day is more like a speed bump than a car crash.

Price-wise, here’s what stood out:

The stock gapped lower at the open, then rallied during the day, but still finished clearly down versus yesterday.
Volume was above its recent average, which usually means a lot of investors were making decisions — some locking in big gains, others stepping in to buy the dip.
Seagate is still not far from its recent highs and sits way above its longer-term average price, so swings of a few percent are becoming “normal” for this name.

Seagate Technology Holdings plc

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Seagate drops ~5% as the red-hot AI storage trade hits a reality check

Summary of the day

What this means in plain language

The main drivers behind today’s move