Seagate drops 7.3% following soft guidance for AI storage demand

Seagate Technology shares fell 7.3% after issuing cautious guidance on AI-related data storage demand, reflecting weaker near-term capital spending from cloud and enterprise customers. The update added pressure to the broader hardware sector, as investors reassessed supply chain visibility and inventory cycles across storage and semiconductor markets. Analysts emphasized that while long-term AI infrastructure growth remains robust, short-term utilization trends continue to impact profitability for key storage component suppliers.