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

Western Digital

06/08/2026 14:52

Updates
** Sandisk SNDK.O slide nearly 8.5%, Western Digital WDC.O slump over 23%, dragging other chipmakers down, despite both forecasting Q1 revenue above Wall Street estimates
** WDC set for steepest one-day drop in 16 months
** Seagate Technology STX.O and Micron Technology MU.O slip 3.5% each
** U.S.-listed shares of SK Hynix SKHY.O fell 6%
** Intel INTC.O down 2.2%
** AMD AMD.O and Marvell Technology MRVL.O down marginally 
** Stocks under pressure after massive YTD rallies: Sandisk ~469%, WDC ~201%, versus a 13.4% gain in Nasdaq .IXIC
** Sandisk forecasts Q1 revenue of $10.3 bln-$10.8 bln; analysts on avg estimated $10.47 bln, according to LSEG-compiled data
** WDC sees Q1 revenue of $4.1 bln, plus or minus $100 mln, compared with est. $4.04 bln
** Both companies continue to benefit from strong AI-driven data center demand
** 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;))