Western Digital, Sandisk Sink Up to 14.6% as AI Storage Forecasts Miss Lofty Expectations
Updated
Updated · Yahoo Finance · Aug 6
Western Digital, Sandisk Sink Up to 14.6% as AI Storage Forecasts Miss Lofty Expectations
3 articles · Updated · Yahoo Finance · Aug 6
Summary
Western Digital fell 14.6% and Sandisk dropped 9.2% in premarket trading after their quarterly updates failed to clear the market’s elevated bar for AI-linked storage names.
Q1 revenue guidance still topped LSEG estimates—Sandisk projected $10.3 billion to $10.8 billion and Western Digital about $4.1 billion—but investors focused on signs that growth and pricing may be normalizing.
RBC said Sandisk’s long-term customer agreements improve visibility, yet investor skepticism could persist as margins near peaks and price growth moderates.
The selloff spread across the sector: Seagate lost 3.6%, Micron 3.7% and U.S.-listed SK Hynix 6.2%, even as analysts still expect data-center demand to support the group.
That tension reflects how far the rally has run: Sandisk is up more than fivefold this year and Western Digital has more than tripled, far ahead of the Philadelphia SE Semiconductor Index’s roughly 70% gain.