$Seagate Tech(STX.US) dropped nearly three points, with RSI at 46. The stock price has fallen more than 20% from its 120-day high, but there is still a 135% gain in the account calculated from the low point.
This year, the hard drive business was reignited by the nearline storage demand from AI data centers. Having risen too sharply, this current pullback seems more like it's giving back some of the overdrawn valuation.
The divergence lies in how long this cycle of prosperity for mechanical hard drives will last—is it a structural replacement for cold storage in data centers, or just another cyclical rebound that ends in two or three quarters? I personally view it as a cycle; the hard drive industry has never proven over the past twenty years that it isn't a cyclical stock.
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