Seagate

STX

Valor de mercado US$ 145 bi

The recent selloff of both stocks has been “well overdone,” analysts say.

More bearish headlines for the AI trade hit Western Digital (WDC) and Seagate (STX) after Wells Fargo slashed price targets for both. Diane King Hall says the lower price targets don't necessarily indicate a heel turn from the firms' bullish stance.

Seagate Technology Holdings Plc. (NASDAQ:STX) and Western Digital Corp. (NASDAQ:WDC) remain major beneficiaries of AI-driven storage demand, but both stocks have come under pressure as investors reassess valuations, future supply growth and the financing burden behind the broader AI infrastructure buildout.

The S&P 500's strong overall performance reflects its heavy weighting at the top. Under the surface, more than a third of the index's stocks are down at least 20% from their 52-week highs.

STX's 44TB Mozaic 4 drives are fueling gross margin expansion as cloud demand, higher storage density and improved cost efficiency boost profitability prospects.

The AI trade is having a rough week.

Seagate just shed more than 14% in a month after a rival made a move that rattled the entire hard-drive sector, yet the company's own numbers tell a completely different story about where demand is heading.

Seagate Technology Holdings Plc. (NASDAQ:STX) and Western Digital Corp. (NASDAQ:WDC) stock fell about 4% or more in Thursday's premarket trading amid a broader semiconductor selloff, despite strong AI-driven demand for data storage.

In Q3 2026, the Portfolio returned 4.46% (net of fees) compared to 0.92% for the Index. Top relative contributors to the Portfolio's performance included ServiceNow, Shopify and Microsoft. By contrast, the largest relative detractors in the quarter were Nvidia, Apple (not owned) and Lam Research.

Western Digital Corporation is rated Buy, and Seagate Technology Holdings plc is rated Hold. WDC is the superior pick for new capital over 12 months. WDC is cheaper on all valuation metrics, holds net cash, and is negotiating long-term contracts out to 2031, supporting its investment case. Toshiba's planned capacity expansion covers only 9–15% of new 2027 demand, posing limited near-term commoditization risk; the real 2028 risk is from Western Digital and STX's own technology race.