Why Sandisk and Western Digital crashed 10% and what it means for bitcoin
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Sandisk and Western Digital shares dropped about 10% in pre-market trading after their quarterly results beat expectations but their forward guidance fell short. Both companies have seen massive gains over the past year driven by the AI storage boom. Despite strong recent performance, the outlook for Sandisk and Western Digital did not meet elevated analyst expectations, triggering the selloff.
Why it matters
The decline in these AI beneficiaries signals a slowdown in the AI momentum that has driven their stock prices and market enthusiasm. This cooling AI trade could prompt investors to rotate capital back into other assets like gold and bitcoin, which have recently gained strength. The market reaction to Sandisk and Western Digital’s guidance suggests the AI-driven rally may be wavering, affecting investor allocations and sentiment.
Key context
Sandisk posted a record $8.97 billion in revenue and $39.25 non-GAAP EPS last quarter, while Western Digital reported revenue of $3.75 billion with a 54.4% gross margin. Both stocks remain about 50% below all-time highs despite their gains. Sandisk has authorized a $14 billion share buyback program in addition to a prior $1.5 billion. Gold is up over 7% recently, and bitcoin is holding above $64,000 despite a security exploit with minimal market impact.
Key numbers and entities
Sandisk (SNDK) and Western Digital (WDC) fell roughly 10% in pre-market trading. Sandisk’s quarterly revenue was $8.97 billion with $39.25 non-GAAP EPS. Western Digital’s revenue was $3.75 billion, up 44% year-over-year, with a gross margin of 54.4%. Sandisk’s first-quarter revenue guidance was $10.7 billion versus analyst estimates of $11.2 billion. Gold has risen more than 7% in recent days, and bitcoin remains above $64,000.
What remains unclear
The source does not flag open questions or uncertainties beyond noting general market sentiment and potential investor repositioning. Detailed reasons for Sandisk’s and Western Digital’s below-expectation guidance are not provided. The lasting impact of the Coldcard exploit on crypto markets remains uncertain but currently minimal according to the text.