Memory chip maker stock prices seagate The company fell more than 8% on Monday, leading the group’s decline after CEO Dave Mosley’s comments raised concerns that it would not be able to meet a surge in demand due to increased artificial intelligence.
Mosley asked in one question. JP Morgan Monday’s meeting will discuss what is needed to add unit or floor capacity to Seagate’s factory to produce more chips.
“If you separate your team and build a new factory or bring in new machinery, it takes too much time. You end up with more production capacity, but that technology grows slower,” Moseley said.
micron Stocks fell 5%, both sandisk and Western Digital Co., Ltd. It is trading about 7% lower.
Stock chart comparing prices of Seagate, Micron, Western Digital, and SanDisk over 5 days.
Memory chip stocks have soared in recent months as a rush to invest in AI has soared demand, making them a key part of building AI in data centers.
Chip production cycles span multiple quarters of a single unit, making investors wary of how long major memory makers can capture demand. CME Group is launching a new futures market for semiconductors, allowing more traders to lock in prices and hedge against rising prices for computing power.
Moseley also mentioned “very long lead times” and maintaining predictability with customers during Monday’s conference.
“We know what’s going to happen a year from now,” he said. “And we basically went to the customer and said, ‘Look, if you want to really map this out, it should be suitable for the data center. We know what’s going to happen. You can buy this product up to a certain period of time.'” So we want to have very solid four to five quarter visibility of what we’re building. But demand far exceeds that. ”
