Updated

Shares of Western Digital and Seagate fell sharply as investors worried that Toshiba plans to ramp up production of a key AI-related storage product, potentially eroding the strong pricing power the two U.S. hard-drive makers have enjoyed amid the AI data-center buildout. The selloff reflects concerns that increased supply from a major rival could compress margins just as both companies have been benefiting from tight storage markets tied to AI infrastructure demand. The move adds to broader volatility in AI-adjacent hardware stocks as investors reassess competitive dynamics across memory and storage suppliers feeding the AI buildout.