Seagate Technology (STX) has been raising the price of its hard disks, but maintaining those increases could get difficult if storage becomes easier to buy. This matters at today’s share price, because the stock trades at 56.9 times earnings, compared to 21.5 for the S&P 500. Now, a competitor’s expansion plan has investors worried about Seagate’s pricing power.

Seagate Raises Prices When Supply Runs Short

That competitor is Toshiba, and its plan would add supply to the market. According to Nikkei, Toshiba plans to double its production capacity for the drives used in AI data centers in fiscal 2027 (which starts in April 2027).

This potential influx of supply matters…