Western Digital shares were in freefall during the regular session following reports that Japanese rival Toshiba plans to invest $400 million to double its hard disk drive production capacity by fiscal 2027. Investors reacted negatively to the news, fearing that the increased supply could threaten the strong pricing power and profit margins that Western Digital and Seagate have recently enjoyed in the AI data-center storage market. This competitive threat overshadowed the positive sentiment from earlier in the week, where the company had been highlighted for its projected 96% year-over-year earnings growth and a Zacks Rank #2 buy rating.