Sandisk and Western Digital Slide as AI Trade Shows Strain

Sandisk and Western Digital dropped roughly 10% in pre-market trading Thursday, even after both storage companies reported strong quarterly results. The selloff came as investors focused less on recent performance and more on whether future guidance could justify the stocks’ massive AI-driven gains.

The reaction matters because both companies have been major winners from the artificial intelligence infrastructure boom. According to CoinDesk, Sandisk has climbed more than 3,000% over the past 12 months, while Western Digital has gained more than 550%, a run that left crypto and precious metals trailing during much of the period.

Sandisk reported record fourth-quarter revenue of $8.97 billion and non-GAAP earnings per share of $39.25, beating expectations. Western Digital also topped estimates, with revenue of $3.75 billion, up 44% year over year, and gross margin rising to 54.4%.

The pressure came from expectations for what comes next. Sandisk projected first-quarter revenue of $10.7 billion, below analysts’ estimate of $11.2 billion, and its earnings guidance also missed forecasts. Western Digital’s outlook was described as solid, but after its sharp stock run, investors appeared to be looking for another major upside surprise.

For crypto markets, the question is whether the weakness in AI-linked equities signals a broader rotation in capital. CoinDesk noted that gold had risen more than 7% over the prior few days, while bitcoin was holding above $64,000 despite limited reaction to the Coldcard exploit. Some crypto traders may read that combination as a sign that momentum is beginning to shift, though the article framed that as a developing market narrative rather than a confirmed trend.