Home›Global Markets›Europe›Sandisk and Western Digital sell off after AI-driven e…

Sandisk and Western Digital sell off after AI-driven earnings beats

Sandisk shares dropped 7% and Western Digital fell 13%, despite sharply higher sales growth, after investors reacted to guidance.

Reported · Written up by our desk · Europe

LiveMint Markets notes that the week’s tech earnings showed how quickly “good” can turn into “sell” when investors are focused on what comes next, particularly for companies tied to the artificial-intelligence buildout.

Palantir posted its 12th consecutive quarter of revenue above projections, but storage names still faced skepticism. LiveMint Markets says both Sandisk and Western Digital reported earnings beats while issuing guidance that spooked investors, leaving traders wary of cyclical swings even as demand for data-center storage remains supported by AI capital spending.

According to LiveMint Markets, Sandisk delivered the strongest figures, with sales up 372% from a year earlier and gross margin rising 58 percentage points to nearly 85%. Western Digital also showed stronger sales and margin trends, but the guidance did not reassure investors.

Following the reports, LiveMint Markets reports Sandisk shares fell 7% on Thursday and Western Digital dropped 13%. The stocks had been rallying into results, with Sandisk up 33% over the five trading days before earnings and Western Digital up 12% over the same period.

More like this

Sources