Story
Seagate Stock Slides on Geopolitical Fears and Chip Sector Contagion
Summary
Shares of the data storage company fell as escalating US-Iran tensions sparked a risk-off move in technology stocks, compounded by a sharp selloff in Asian semiconductor markets.
Seagate Technology (STX) shares fell 3.9% in pre-market trading on Monday, caught in a broad technology sector downturn driven by rising geopolitical tensions and a sharp selloff in Asian chip stocks.
Geopolitical Tensions Spark Risk-Off Move
A flare-up between the United States and Iran over the weekend rattled global markets, sending oil prices higher and prompting investors to shed riskier assets like technology stocks. The U.S. military conducted new strikes after Iranian forces attacked a commercial vessel in the Strait of Hormuz, according to reports. The subsequent uncertainty fueled fears that a wider conflict could drive inflation, potentially forcing central banks to raise interest rates and curb the AI-related infrastructure spending that has powered the sector's recent gains.
Sector-Wide Contagion
AdThe negative sentiment was amplified by a steep decline in Asian markets. Memory chip manufacturer SK Hynix plunged nearly 14% in Seoul, triggering a wider selloff across the region's semiconductor industry. This contagion spread to U.S. markets, placing pressure on Seagate's peers, including Western Digital and Micron, as investors took profits on some of 2026's top-performing stocks.
Context for Seagate
The macro-driven selling overshadowed a positive analyst note from Citi, which maintained a Buy rating on Seagate and raised its price target to $1,240 from $1,150. The stock was already facing pressure after retreating from a June 2026 peak of over $1,100 amid concerns about its valuation following a significant year-to-date rally. Shares hit a session low of $861.63 before staging a partial recovery.