Seagate's shares have dropped 27.16% in the past month, with investors losing confidence in the company's ability to sustain its growth.
Seagate's shares have taken a beating in recent weeks, with the company's stock price plummeting by 27.16% over the past month.
The Damage Hits the Whole Group
According to Wall Street analysts, Seagate is falling mainly because investors no longer trust that AI infrastructure spending will last.
The damage hit the whole group, with Western Digital and other storage names leading the market in the first half before sliding into the S&P 500's bottom 10% as investors started wondering debt-funded AI buildouts.
Seagate Shares Plunge Amid AI Infrastructure Concerns Persisting
Despite the recent slump, analysts remain overwhelmingly bullish on Seagate, with most nearline supply allocated under long-term supply agreements through calendar 2028.
One major bank even raised its Seagate target during the selloff and said it would remain 'aggressive buyers'.
Seagates Q1 2027 Revenue Surges 61% Year Over Year
The company's AI-driven storage demand drove fiscal Q1 2027 revenue up 61.0% year over year, but investors seem to be losing trust that this trend will continue.
Seagate makes mass-capacity hard drives, and data-center customers took 90% of the capacity it shipped last quarter, which is a significant chunk of their business.
The question on everyone's mind is what comes next for Seagate. Will the company be able to sustain its growth, or will investors continue to lose confidence in AI infrastructure spending?
Source: Google News
