Why Sandisk and Western Digital crashed 10% and what it means for bitcoin
Sandisk and Western Digital stocks fell significantly despite strong earnings reports, as investors reacted negatively to weaker-than-expected revenue guidance. The market shift suggests a potential rotation of capital away from AI-heavy tech stocks toward assets like gold and bitcoin.
Why it matters
The cooling of the AI-driven stock rally may signal a broader shift in investor sentiment and capital allocation across global markets.
Sandisk posted record fourth-quarter revenue of $8.97 billion and non-GAAP EPS of $39.25, comfortably beating expectations. Western Digital also delivered a double beat, reporting revenue of $3.75 billion , up 44% year over year, while its gross margin surged to 54.4%. Despite those results, both stocks are now trading roughly 50% below their all-time highs.
The problem was guidance. Sandisk’s first-quarter outlook came in below expectations, with projected revenue of $10.7 billion versus the $11.2 billion analysts had estimated. Its EPS guidance also fell short. Western Digital’s first-quarter outlook was solid, but after a 500% run, investors were looking for another blowout beat.
Sandisk and Western Digital have gained more than 3,000% and 550%, respectively, over the past 12 months, propelled by the AI boom and leaving assets such as crypto and precious metals in the rearview mirror.
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