Seagate Shares Tumble Nearly 7% Monday, Dragging Down Memory Chip Sector; Is the Memory Chip Sector Set for a Major Correction?

May 19, 2026
4:23 am

Seagate Shares Tumble Nearly 7% Monday, Dragging Down Memory Chip Sector; Is the Memory Chip Sector Set for a Major Correction?

TradingKey – Amid the AI-driven demand for storage chips, Seagate Technology ( STX) saw its stock sold off due to management’s cautious remarks regarding the pace of capacity expansion.

The latest reports indicate that Seagate CEO Dave Mosley stated at a JPMorgan conference that building new factories is too time-consuming, and investing in expansion now could even lead to overcapacity after demand peaks.

Following the news, Seagate’s stock price fell more than 8% intraday on Monday and closed down 6.87%, marking its largest decline in nearly two months; other stocks in the storage chip sector weakened in tandem, with Micron ( MU) falling 5.95%, SanDisk ( SNDK) falling 5.35%, and Western Digital ( WDC) falling 4.84%.