Seagate shares drop 7.5% after CEO rejects new factory plans, focusing on tech upgrades instead.

Seagate's stock fell 7.5% after CEO Dave Mosley announced at a JPMorgan conference that the company will not build new factories due to long timelines and risk of excess capacity. Instead, Seagate will focus on improving storage density technology within existing facilities, aiming for growth through higher terabytes per platter. Supply chain delays persist, with key components taking over nine months to procure. The company expects 50% of its storage to transition to its new HAMR technology by mid-2026, while continuing to operate on a build-to-order model amid strong customer demand.