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Seagate shares drop over 8% as CEO warns of supply limits amid soaring AI chip demand

Market News
18 May 2026
CNBC
View Source
Bearish
pluang ai news

Shares of memory chip makers including Seagate, Micron, SanDisk, and Western Digital fell sharply after Seagate's CEO expressed concerns about meeting the rising demand driven by AI development. The CEO highlighted that expanding production capacity quickly is challenging due to long lead times and the risk of slowing technological progress. This caution comes despite recent surges in memory chip stocks fueled by AI investments. Investors remain cautious about how well chip makers can sustain supply as demand continues to rise over multiple quarters.

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