<div id="readability-page-1"><div><p>Shares of memory chip maker <span id="SpecialReportArticle-QuoteInBody-1">Seagate<span><span id="-WatchlistDropdown"></span></span></span> slipped more than 8% Monday, leading a group-wide sell-off after comments from CEO Dave Mosley raised concerns that it won't be able to meet the soaring demand fueled by the artificial intelligence buildout.</p><p>Mosley was asked at a <span id="SpecialReportArticle-QuoteInBody-3">JPMorgan<span><span id="-WatchlistDropdown"></span></span></span> conference on Monday what it would take to add unit or floor capacity to produce more chips in Seagate's factories.</p><p>&#34;If we took the teams off and started building new factories or bringing up new machines, that would just take too long. You would end up with more capacity, but then you'd slow the rate of growth on that technology,&#34; Mosely said.</p><p><span id="SpecialReportArticle-QuoteInBody-4">Micron<span><span id="-WatchlistDropdown"></span></span></span> shares were down 5%, with both <span id="SpecialReportArticle-QuoteInBody-5">SanDisk<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-6">Western Digital Corporation<span><span id="-WatchlistDropdown"></span></span></span> trading roughly 7% lower. </p></div><div><div>Stock chart icon<p><img src="https://imageproxy.pbkrs.com/https://static-redesign.cnbcfm.com/dist/a54b41835a8b60db28c2.svg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://static-redesign.cnbcfm.com/dist/a54b41835a8b60db28c2.svg"/></p></div><p>Stock chart comparing the prices for Seagate, Micron, Western Digital and SanDisk over a five-day period. </p></div><div><p>Memory chip stocks have soared in recent months as a flood of AI investing has sent demand soaring, with the chips a key part of the AI buildout in data centers.</p><p>Chip production cycles stretch over many quarters for a single unit, and investors are increasingly wary of how long the leading 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 the rising prices of computing power.</p><p>At Monday's conference, Mosely also addressed the &#34;very long lead times&#34; and maintaining predictability with its clients.</p><p>&#34;We know what's coming out a year from now,&#34; he said. &#34;And we've basically gone to the customers and said, 'Look, if you want to plan this really well, which it should be for your data centers, we know what's coming out. You can buy this stuff up to a certain period.' And so we want to keep that four or five quarters of visibility very, very solid for what's being built. But the demand is significantly higher than that.&#34;</p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

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<p>Seagate's shares fell over 8% following CEO Dave Mosley's comments at a JPMorgan conference, indicating that building new factories to meet rising AI-driven demand would take too long. This led to a sell-off in memory chip stocks, with Micron down 5% and both SanDisk and Western Digital down about 7%. Mosley emphasized the challenges of production cycles and maintaining client predictability amidst soaring demand.</p>

- Shares of Seagate fell over 8% amid concerns raised by CEO Dave Mosley regarding the company's ability to meet the increasing demand for memory chips driven by AI investments.  
- Mosley indicated that expanding production capacity would take too long, which could hinder the growth rate of new technology.  
- As a response to rising demand and long lead times, CME Group announced a new futures market for semiconductors to help traders hedge against price increases in computing power.

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Seagate leads memory sell-off as CEO says it would 'take too long' to build new factories