Toshiba's plan to double its hard-drive output
Toshiba, the smallest of the three companies that make hard drives, plans to double its output to serve demand from AI data centres. More supply from a rival could make it harder for Seagate and Western Digital to keep raising prices, which weighs on them more than on other technology companies.
What changed
We lowered our expected return for Seagate Technology Holdings and Western Digital against the rest of the technology sector.
| Symbol | Without it | With it | Change |
|---|---|---|---|
| Seagate Technology HoldingsSTX | 10.35% | 9.82% | −0.53pp |
| Western DigitalWDC | 11.02% | 10.48% | −0.54pp |
Each stock as it stands now, and without this story. Figures are annual expected returns (arithmetic means). They are not a forecast or a promise.