Seagate CEO Dave Mosley said building new factories takes too long and could lead to overcapacity. The comments came during a JPMorgan conference. Seagate stock fell over 8% after the remarks.
CEO cites long timelines and overcapacity fears.
The company has seen surging demand from data centers, posting record gross margins last quarter. Seagate's stock has risen nearly 600% over the past year, driven by AI-related storage needs.
Mosley noted that customers accept the current capacity plans. He said, "We show these results to customers, and their response is 'I accept.'" The company is not rushing to expand manufacturing capacity.
Seagate's cautious stance contrasts with the booming demand for storage in AI workloads. The company is balancing growth with the risk of overcapacity in the future.
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