New York, Jan 7, 2026, 14:02 ET — Regular session
- Seagate shares down about 7% in afternoon trade, trimming Tuesday’s 14% surge to record highs
- Storage and memory names rallied on Nvidia CEO Jensen Huang’s CES remarks, then cooled
- Focus shifts to Seagate’s late-January results for demand, pricing and margin signals
Shares of Seagate Technology Holdings plc fell about 7% on Wednesday, giving back part of a sharp rally that pushed the data-storage maker to record highs a day earlier. The stock was down around 7.2% at $306.74 in afternoon trading, after dipping to roughly $299.
Tuesday’s jump put Seagate in the middle of a broader bid for “AI infrastructure” names after Nvidia CEO Jensen Huang spoke at the Consumer Electronics Show in Las Vegas. Seagate gained 14% in that session as SanDisk jumped more than 27% and Western Digital rallied 17%, Reuters reported. “I think we’re going to have a very strong earnings season for Big Tech,” said Jed Ellerbroek, a portfolio manager at Argent Capital, pointing to rising investment in hardware. Reuters
Huang has been blunt about what the next squeeze could be. He called the memory storage market a “completely unserved market today” and said it could become “the largest storage market in the world,” Business Insider reported from his CES comments.
Analyst targets have followed the price. Benchmark, Bank of America, TD Cowen and Cantor Fitzgerald have raised their price objectives on Seagate, with Cantor’s target at $400, according to Investing.com.
Seagate, which sells hard disk drives (HDDs) — the spinning disks used to store large amounts of data in data centers — last guided for fiscal second-quarter revenue of $2.70 billion, plus or minus $100 million, and non-GAAP EPS of $2.75, plus or minus $0.20. Non-GAAP strips out certain costs the company says can muddy the underlying trend. Seagate CEO Dave Mosley said, “AI is transforming how content is being consumed and generated,” as the company ramps its Mozaic HAMR drives, a heat-assisted method to pack more data on each disk. Seagate Investors
The pullback was not isolated. Western Digital was down roughly 9% and Seagate about 8% on Wednesday, after both surged the day before, Investopedia reported.
There is a simpler read, too: the trade got crowded fast. Storage has a history of boom-and-bust pricing, and even a small wobble in cloud spending or a softer tone on margins can turn an orderly retreat into something uglier.
The next big test is Seagate’s fiscal second-quarter report, projected for Jan. 27, when investors will look for updates on data-center demand, pricing and how quickly higher-capacity drives are moving into volume.
Related articles: NASDAQ:STX
