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SanDisk and Western Digital tumble after guidance disappoints

Despite record quarterly results and SandDisk’s expanded buyback authorization, both stocks dropped about 10% in pre-market trading on weaker-than-expected forward outlooks, reviving questions about capital rotation toward crypto.

Reported · Written up by our desk · Market Structure

SanDisk and Western Digital fell roughly 10% in pre-market trading after their forward outlooks failed to meet elevated expectations, even though both companies reported strong quarterly results, according to CoinDesk.

SandDisk posted record fourth-quarter revenue of $8.97 billion and non-GAAP EPS of $39.25, while Western Digital reported revenue of $3.75 billion, up 44% year over year, and gross margin that rose to 54.4%. Investors focused on guidance, with SandDisk forecasting first-quarter revenue of $10.7 billion versus $11.2 billion analysts estimated, and Western Digital seen as not delivering the kind of blowout beat traders wanted after prior gains.

CoinDesk also noted that SandDisk and Western Digital had surged more than 3,000% and 550%, respectively, over the past 12 months on the AI storage boom, and that both shares are now trading about 50% below their all-time highs.

CoinDesk pointed to signals such as gold rising more than 7% in recent days and bitcoin holding above $64,000 as potential indicators that the market narrative around where investors are placing capital may be shifting as AI momentum cools.

Latest closeGold $4,308.50 ▲5.2%|Bitcoin $64,786.20 ▲0.3%

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