Seagate tumbles 7.1% as memory rout deepens, Wedbush sees opportunity

Seagate Technology shares tumbled 7.1% to about $891 on Tuesday, extending a two-day decline to more than 13% as a broad selloff swept through memory and storage equities.

Wedbush analysts described the pullback as a buying opportunity for Seagate, arguing the selloff was driven by sector-wide jitters rather than company-specific weakness, according to a research note.

The 7.1% drop followed a 6% decline in the prior session, bringing the two-day loss to roughly 13%. The rout began Monday after weakness in Korean chipmakers Samsung and SK Hynix triggered a broad selloff across memory and storage names. SanDisk plunged 11%, while Micron Technology and Western Digital each slid 10% on Monday.

The decline interrupted what had been an extraordinary upward trajectory for Seagate, which had rallied alongside the broader memory complex this year as AI-driven demand for data storage boosted the sector. The Philadelphia Semiconductor Index logged its second-worst session of the past year during the selloff.

The memory sector reversed sharply later in the week after Micron Technology reported a blowout fiscal third quarter on Wednesday, posting revenue of $41.5 billion and a record gross margin of 85%. Micron shares surged 17% on Thursday, while SanDisk jumped 15% and Western Digital climbed 13%. Seagate's recovery lagged the group as the stock remained under pressure from the two-day rout.

The two-day decline puts Seagate at its lowest level in weeks, testing support near the stock's 50-day moving average. Investors will watch whether the stock can reclaim the $950 level in coming sessions, with the broader memory sector's earnings season providing the next catalyst for direction.

This article is for informational purposes only and does not constitute investment advice.