Seagate Drops 8% After CEO Warns New AI Chip Capacity Takes Too Long
Updated
Updated · CNBC · May 18
Seagate Drops 8% After CEO Warns New AI Chip Capacity Takes Too Long
1 articles · Updated · CNBC · May 18
Seagate shares fell more than 8% on Monday after CEO Dave Mosley said building new factories or adding machines fast enough to meet AI-driven demand would take too long.
Mosley told a JPMorgan conference that expanding capacity could slow technology ramp-ups, while Seagate is trying to preserve four to five quarters of supply visibility for customers even as demand runs well above that window.
The warning hit the broader memory-chip group: Micron dropped 5%, while SanDisk and Western Digital each fell about 7%.
Memory-chip stocks had surged on heavy AI data-center spending, but the sell-off underscored investor concern that long production cycles could limit how much of that demand manufacturers can actually capture.
With demand for AI chips at an all-time high, what fundamental risk is causing investors to flee the market?
As chip shortages become a 'structural reset,' are permanently higher prices for consumer electronics the new normal?
Is the AI revolution's true bottleneck not chips, but the power grid's inability to keep up with demand?
Seagate Faces Investor Scrutiny as AI Storage Supercycle Drives Demand, Risks, and Competitive Shifts
Overview
On May 18, 2026, Seagate Technology Holdings' stock dropped sharply after CEO Dave Mosley’s comments at a JPMorgan conference raised investor concerns about the company’s ability to meet the rapidly growing demand for memory chips, fueled by the booming artificial intelligence sector and the AI buildout in data centers. While the market saw a surge in memory chip demand and rising stock values, Mosley explained that building new factories would take too long and risk future overcapacity. This cautious approach led to fears that Seagate might miss out on immediate opportunities in the fast-evolving AI-driven storage market.