[Bernstein: TDK Deal Threat Overestimated, Seagate and Western Digital Unduly Punished] DeepTech TechFlow reports, according to Trend Research, Bernstein's October 7, 2026, research note pointed out that after Bloomberg reported on Seagate and Toshiba competing for TDK's magnetic head business, Seagate's stock dropped 9% and Western Digital's stock fell 7%. Bernstein believes that TDK holds a 15% to 20% share of the global hard drive magnetic head market, with Toshiba absorbing 70% to 90% of TDK's production, leaving only 1% to 7% of the remaining capacity to cover the combined magnetic head demand of Seagate and Western Digital. Bernstein maintains an "outperform" rating for Seagate and Western Digital, with target prices of $1,350 and $770, respectively. Bernstein argues that the market has overestimated three concerns regarding the TDK deal—regulatory, financing, and supply chain obstacles—which make the deal difficult to finalize. Seagate and Western Digital produce most of their magnetic heads in-house and have limited reliance on TDK. Bernstein recommends buying during weakness, with Seagate as the top pick.