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Western Digital and Seagate Face Weekly Decline as Price Targets Slashed

MixedMedium impact
WDC$356.45 −2.10%STX$690.81 −3.19%

Western Digital Corporation (WDC) and Seagate Technology Holdings PLC (STX) are heading toward their third consecutive weekly loss amid a broader slide across data-storage and artificial intelligence technology shares. Over the past five trading sessions, Western Digital stock dropped roughly 10%, while Seagate fell nearly 12%. Analysts at Wells Fargo lowered price targets for both companies to $450 and $865, respectively, while keeping positive ratings on both names.

The recent downturn reflects growing investor caution over high borrowing costs, returns on artificial intelligence investments, and potential supply increases in the hard drive market. Japanese manufacturer Toshiba announced plans to double its AI data center hard drive capacity by fiscal 2027, sparking concerns over potential pressure on pricing power and profit margins. Despite these headwinds, underlying demand remains firm, supported by durable annual revenue growth expectations of 25% to 30% and gross margin potential above 60%.

Investors will turn their attention to upcoming quarterly reports for signals on customer demand and margin stability. Western Digital is scheduled to report its fiscal first-quarter 2027 results on October 22, followed by Seagate on October 27. Both companies previously projected quarterly revenue of approximately $4.1 billion, making future guidance a key indicator of market strength.

Key points

  • Western Digital (WDC) and Seagate (STX) are on track for their third consecutive weekly decline.
  • Price targets were reduced to $450 for Western Digital and $865 for Seagate while maintaining Overweight ratings.
  • Recent pullbacks follow worries over AI capital spending efficiency and expanding competitor drive capacity.
  • Both companies previously projected first-quarter revenue of roughly $4.1 billion ahead of earnings late in October.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why are Western Digital and Seagate stocks falling?

Shares have declined due to broader pullbacks in AI technology stocks, rising borrowing costs, and reports that Toshiba plans to double its hard drive manufacturing capacity by fiscal 2027.

What are the revised price targets for WDC and STX?

Wells Fargo reduced Western Digital's price target to $450 from $730 and Seagate's target to $865 from $1,180, while keeping Overweight ratings on both stocks.

When do Western Digital and Seagate report earnings next?

Western Digital is set to report fiscal first-quarter 2027 financial results on October 22, and Seagate is scheduled to report on October 27.