Seagate, Western Digital stocks sink as rival Toshiba's expansion plans hit storage highfliers

What happened: Seagate Technology ( STX ) stock fell 11% Friday while Western Digital ( WDC ) declined 7%, after a report that competitor Toshiba is preparing to ramp up hard disk drive production as demand from AI data centers continues to grow.

What's behind the move: Toshiba plans to double its production of hard disk drives by fiscal 2027, Nikkei reported . The investment will focus on expanding its manufacturing capacity as the company seeks to capture a larger share of the storage market for AI infrastructure.

What else you need to know: Shares of rivals Seagate and Western Digital fell on the news after both stocks posted strong gains this year as the AI infrastructure boom has fueled demand for storage.

Even with Friday's decline, Seagate stock is up more than 200% year to date, while Western Digital has gained more than 140%.

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.