Seagate Technology Holdings PLC shares traded lower Friday as DeepSeek’s V4.1 Flash model intensified concerns that AI software efficiency could reduce hardware requirements across storage infrastructure. The model reportedly needs one-quarter of the High Bandwidth Memory capacity and one-eighth of the SSD storage used by prior generations. Seagate primarily supplies high-capacity hard disk drives rather than flash memory or HBM, but the prospect of lower baseline hardware intensity prompted a broader pullback among storage stocks. The company’s long-term investment case remains tied to hyperscale demand for bulk data retention, adoption of its Mozaic 3+ and 4+ Heat-Assisted Magnetic Recording platforms, and nearline production capacity allocated through calendar year 2028 under binding customer agreements. In its fourth-quarter fiscal 2026 disclosures, Seagate reported $3.63 billion in revenue, up 48.5% year over year, non-GAAP earnings per share of $5.71 and a record 52.7% gross margin. Management guided first-quarter fiscal 2027 revenue to $4.1 billion and expected EPS of $7.30. Seagate shares were down 3.70% at $830.41 Friday, according to Benzinga Pro data.