Seagate Technology PLC (STX) shares plummeted 8.43% during Tuesday's intraday session, as a broad selloff across the memory and data storage sector intensified ahead of the company's scheduled post-market earnings release.

The storage sector faced sustained selling pressure, with peers like SanDisk, Western Digital, Micron Technology, and SK Hynix also declining sharply. The downturn was fueled by Morgan Stanley's warning that the AI-driven semiconductor storage boom is nearing an inflection point, with memory contract prices expected to peak in the fourth quarter. Additionally, ChangXin Memory Technologies' (CXMT) IPO-funded capacity expansion is seen as a direct threat to the medium-to-long-term market share and pricing power of U.S.-listed storage companies.

Despite positive analyst ratings, the pre-earnings bull-bear battle has notably intensified, amplifying selling pressure as investors brace for Seagate's quarterly report, with consensus EPS expectations at $4.89 and revenue projected to grow approximately 43% year-over-year.