Key Highlights

● Seagate closed at $642.14 on October 22 as storage and memory names fell.

● Seagate makes hard-disk drives used in large AI data centers.

● Western Digital reported adjusted earnings of $4.64 a share against $4.08 expected.

● Western Digital guided next-quarter revenue to $5.0 billion to $5.2 billion.

Seagate Technology (NASDAQ:STX) slid on Thursday, October 22, 2026, closing at $642.14 as storage stocks fell ahead of Western Digital (NASDAQ:WDC)'s results on the S&P 500. Seagate had no news of its own. Its shares moved with a broad selloff in AI and memory names, with peer Western Digital due to report after the closing bell.

Seagate makes hard-disk drives, the high-capacity storage used in large data centers. Demand for that storage has been rising as AI applications generate and store vast amounts of data, which has linked Seagate to the AI build-out.

Storage and memory under pressure

Seagate fell alongside other storage and memory companies. Western Digital slid during the regular session before reporting. Micron Technology (NASDAQ:MU) fell below $900, and Sandisk (NASDAQ:SNDK) fell sharply.

The Philadelphia Semiconductor Index had its biggest one-day drop since June 23. Lam Research (NASDAQ:LRCX)'s guidance on Wednesday evening cited supply constraints and had a midpoint slightly below consensus, hitting chip and equipment stocks. The report from Meta Platforms (NASDAQ:META) the same evening showed its 2026 capital spending range narrowed to $135 billion to $145 billion and negative free cash flow of $2.12 billion, which marked its first cash outflow in more than a decade.

Nvidia (NASDAQ:NVDA)'s chief executive added, "The demand of the capital is much greater than the availability of the capital."

Western Digital's after-hours swing

After the close, Western Digital reported a quarter that beat forecasts and raised its outlook. Adjusted earnings were $4.64 a share against $4.08 expected, and revenue was $4.38 billion against $4.14 billion. It guided next-quarter revenue to $5.0 billion to $5.2 billion, compared with an estimate of $4.57 billion, and earnings of $5.60 to $6.00 a share, compared with $4.82. It also raised its dividend to $0.175.

"Fiscal 2027 is off to a strong start, with results exceeding expectations," Western Digital's chief executive said.

Even so, the after-hours reaction was choppy. An initial pop was erased, and the stock traded lower after hours. Reports differed on the size of the move. For Seagate, the swing showed that strong numbers alone may not be enough to lift sentiment right now.

Market snapshot

The S&P 500 fell 93.74 points to 7,663.43, its worst day since July. The Nasdaq Composite dropped 694.00 points to 26,008.86, its steepest decline since June 5, ending a seven-session winning streak. The Dow Jones Industrial Average edged up 11.89 points.

About two of every three S&P 500 stocks rose, according to market reports. Staples had their best day since April 2025, health care hit a record, and the 10-year Treasury yield fell back below a closely watched threshold for the first time since September 22.

Seagate Watches How the Market Digests Peer Results

Friday's regular session will show how investors digest Western Digital's results, and whether Seagate trades in sympathy. Western Digital's guidance points to strong demand for storage, but the after-hours reaction suggests caution remains.

The hyperscalers report next week. Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) post results on October 28, and Amazon (NASDAQ:AMZN) reports on October 29. Their data-center spending plans are a key driver of demand for high-capacity drives.

The Federal Reserve announces its rate decision on October 28.