STX Stock Inches Higher Overnight: Seagate Reportedly Makes Higher Bid For TDK’s Multi-Billion Magnetic-Heads Business

Seagate is locked in a bidding war with Toshiba for the business, which could be worth several billion dollars, Bloomberg reported.

• TDK’s exit could reshape the competitive landscape for HDD components.
• The acquisition could give the winner greater control over a critical HDD component as data-center storage demand surges.
• STX has gained more than 223% this year and the stock had a ‘bullish’ retail sentiment on Tuesday.

Seagate Technology Holdings Plc (STX) is reportedly bidding against Toshiba Corp. to acquire TDK Corp.’s magnetic-head business in a deal that could be worth several billion dollars, in a bid to beef up its control over a critical part of the hard-disk drive (HDD) supply chain.

Seagate stock rebounded from red overnight to trade 0.1% higher as of 2:30 a.m. EDT on Tuesday.

Seagate, Toshiba Vie For TDK Business

Toshiba began discussions with TDK in the spring, and Seagate later submitted a higher offer in the summer, Bloomberg reported Tuesday, citing people familiar with the matter. 

TDK is considering selling the HDD magnetic-head unit as it shifts investment toward higher-growth businesses including batteries, passive components and sensors, according to the report. 

The acquisition would give the winner greater control over a crucial part of the hard-disk-drive supply chain. TDK is the only independent maker of HDD magnetic-recording heads and currently supplies Seagate, Toshiba and Western Digital.

Seagate has expanded its storage business through acquisitions including Intevac, a thin-film processing systems supplier, for approximately $119 million in 2025 and Xyratex, a data-storage technology provider, for about $376 million in 2014. 

What Are Magnetic Heads?

Magnetic heads are the tiny components that write data onto and read data from the spinning magnetic platters inside an HDD. They work alongside the disk media, actuator and other precision components that together form the storage device.

While they are not semiconductors themselves, magnetic heads sit within the broader hardware supply chain underpinning AI data centers. AI workloads are generating enormous volumes of data that must be stored, with HDDs offering significantly cheaper mass-capacity storage than flash for many applications.

Seagate and Western Digital manufacture some magnetic heads internally but rely on TDK to supplement production during periods of strong demand. 

Toshiba, meanwhile, depends entirely on TDK for the component, making access to its technology particularly important to the Japanese group.

STX: Stock Move, Retail View

Seagate has been one of the biggest beneficiaries of the AI infrastructure boom. STX stock has gained more than 223% year to date, although shares have experienced sharp swings in recent months.  

STX is down about 22% from its record high on June 18. Last Friday, the stock plunged 10.2% over a report saying that Toshiba plans to significantly expand its HDD capacity, and rebounded partly on Monday. 

On Stocktwits, the retail sentiment for STX was ‘bullish,’ unchanged since last Friday. 

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