Sandisk, WDC drag chip sector lower as lofty valuations spur pullback in AI trade

Marvell Technology

06/08/2026 11:36

Updates
** Sandisk SNDK.O down nearly 9%, Western Digital WDC.O off over 14% in premarket trading, dragging other chipmakers down, despite both forecasting Q1 revenue above Wall Street estimates
** Seagate Technology STX.O and Micron Technology MU.O down 3.5% each
** U.S.-listed shares of SK Hynix SKHY.O fell 6%
** Intel INTC.O, AMD AMD.O and Marvell Technology MRVL.O were down 1% each
** Stocks come under pressure after massive YTD rallies, with Sandisk up about 469% and WDC up about 201%, versus a 13.4% gain in the Nasdaq .IXIC
** Sandisk forecasts Q1 revenue of $10.30 bln-$10.80 bln, above analysts' estimate of $10.47 bln, according to LSEG-compiled data
** WDC sees Q1 revenue of $4.1 bln, plus or minus $100 mln, compared with analysts' estimate of $4.04 bln
** Both companies continue to benefit from strong AI-driven data center demand
** Analysts at J.P.Morgan say WDC's near-term shipment softness is tied to product transitions, not weaker AI demand, while Sandisk's expanding long-term supply agreements position it for improved visibility and less cyclical earnings
** SNDK is shifting its business model to long-term purchase agreements to increase revenue visibility; CEO says half of fiscal 2027 production is already sold under such deals

 (Reporting by Rashika Singh in Bengaluru)
 ((Rashika.Singh@thomsonreuters.com;))