Seagate CEO Warns Capacity Limits as Shares Slide 12% in Five Days
Seagate CEO Dave Mosley cautioned that adding new factories or machines for AI storage would slow technology growth, signaling capacity constraints. Seagate shares fell over 12% in the past five trading days, including a 2% drop on Tuesday, as investors reassess its ability to meet booming AI demand.
1. Mosley Highlights Production Constraints
At a recent conference, Seagate CEO Dave Mosley explained that building new factories or installing additional machines to boost AI storage capacity would take too long and potentially hinder the pace of technological advancements, raising concerns about the company’s ability to scale.
2. Seagate Shares See Sharp Declines
Following Mosley’s remarks, Seagate stock plunged sharply on Monday, rebounded slightly, then dropped about 2% on Tuesday, resulting in a cumulative decline of more than 12% over the last five trading days as investors weighed the impact on future growth.
3. Wider Memory Sector Reaction
Other major memory names also tumbled, with Sandisk down nearly 10%, Western Digital sliding about 10%, and Micron off roughly 13%, while the Roundhill Memory ETF fell 8% last week but remains up 82% year-to-date, reflecting profit-taking and renewed caution in the AI infrastructure space.