Western Digital and SanDisk Shares Plunge 10% Despite Q3 Earnings Beat

Key Facts

In a move reflecting growing caution over the sustainability of the tech rally, SanDisk and Western Digital shares plummeted 10%. This sharp decline occurred despite both companies reporting robust third-quarter results that surpassed earnings and revenue expectations. According to reports, the sell-off has ignited debates regarding a potential capital rotation, where investors might be shifting focus from AI-linked hardware winners toward the cryptocurrency market.

While fundamental performance remained strong, SanDisk's forward guidance weighed on sentiment, with Q1 revenue projected at $10.7 billion compared to the $11.2 billion anticipated by analysts. For Western Digital, market observers noted that after a significant rally over the past year, investors were positioned for a blowout beat that did not materialize in the earnings guidance. Consequently, both stocks are now trading significantly below their previous all-time highs as the 'AI trade' shows signs of stalling.

Per market data, WDC closed at $519.17 on August 5, 2026, after hitting a day low of $518.28. Investors should watch for stabilization around these levels, as the current economic calendar shows no immediate sector-specific catalysts. The primary focus remains on whether this price action signals a temporary correction or a broader structural shift in liquidity away from AI hardware infrastructure.