Seagate Technology Holdings PLC (NASDAQ:STX) shares are trading lower Tuesday after the company’s CEO recently raised concerns about the company’s capacity to meet rising demand for memory chips due to AI expansion. This has also caused peers within the sector to pull back.



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<li>Seagate stock is under selling pressure. Why is STX stock retreating?</li>
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<h2>Seagate CEO Warns Of Capacity Constraints</h2>



During a JPMorgan conference on Monday, CEO Dave Mosley discussed challenges tied to expanding production capacity at Seagate's factories.



&#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; Mosley said, according to CNBC.



Mosley also pointed to &#34;very long lead times&#34; and said the company is working to maintain predictability with customers by providing visibility into products planned for release next year.



&#34;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; he said.



Some peers that declined following this news include Western Digital Corporation (NASDAQ:WDC) and Sandisk Corporation (NASDAQ:SNDK) 



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<h2>Memory Stocks Pull Back</h2>



Price Action: At the time of publication, Seagate shares are trading 5.26% lower at $701.86, Western Digital shares are trading 4.50% lower at $438.05, and Sandisk shares are trading 2.49% lower at $1,299.78, according to data from Benzinga Pro.



Image via Shutterstock

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Seagate Technology shares fell 5.26% after CEO Dave Mosley expressed concerns about the company's ability to meet rising AI-driven memory demand due to capacity constraints. This warning has negatively impacted peers like Western Digital and Sandisk, which also saw declines of 4.50% and 2.49%, respectively.

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Seagate Tech

Sandisk

Western Digital

iShares Semiconductor ETF

VanEck Semiconductor ETF

SPDR S&P Semicon

Invesco PHLX Semiconductor ETF

Direxion Semicon Bull 3X

First Trust Nasdaq Food & Semicon

JPMorgan Chase

S&P 500

NASDAQ-100

Atmos Energy

GE Aerospace

JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

JPMORGAN CHASE & CO. 6%NON CUM DEP SHS REP 1/400TH PFD SER EE

JPMORGAN CHASE & CO. DEP REP 1/400TH (5.75% NON CUM PFD DD)

JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

JPMorgan Chase & Co.

JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

Western Digital - WI

Sandisk - WI

Seagate Leads Memory Stocks Lower Following Capacity Warning