Western Digital and Seagate shares fall on fears of Toshiba competition

Shares of drive makers Western Digital and Seagate fell on worries that Toshiba will boost production of a key AI data-storage product.

Investors worry that increased supply from Toshiba could weaken the strong pricing power Western Digital and Seagate currently hold in this market.

For beginners A new major competitor increases market supply and can reduce incumbents' ability to set prices, directly affecting their future profits.