Western Digital and Seagate shares slip as AI‑driven storage sell‑off rattles markets

Western Digital’s stock has fallen more than 40% from its recent record high, prompting a wide split in analyst price targets ranging from $560 to $800. The decline follows a broader pull‑back in US semiconductor stocks amid concerns that artificial‑intelligence hype may be overstating demand for memory and storage components. Regulators in South Korea responded to heightened market volatility by tightening rules on leveraged ETFs, while foreign investors withdrew capital at the fastest pace in 25 years.

Seagate’s share price has been trading sideways as investors balance long‑term AI‑driven data storage needs against weaker short‑term hard‑disk‑drive (HDD) performance. The company highlights the role of near‑line HDDs for cloud and hyperscale workloads and is developing higher‑density HAMR technology, but earnings pressures remain as the HDD cycle softens. Both companies’ fortunes reflect broader uncertainty in the storage sector as AI and cloud growth collide with market turbulence.