Seagate Investment in Virident Makes Fusion-io the 'Only Viable Alternative' in Sector

Shares of Fusion-io

are being sold Tuesday morning despite some bullish comments from Piper Jaffray's Andrew Nowinski earlier. The comments follow news on Monday afternoon Seagate

will make a $40 million investment in Virident. Nowinski believes Seagate's investment "validates" the market and will make it harder for a company to buy Virident , making Fusion-io what he calls the "only viable alternative" in that market. The Piper Jaffray analyst maintains an Overweight rating and $33 price target on shares of Fusion-io. Fusion-io stock is down nearly 4.5 percent to $19.60 at last check.