Sandisk, Western Digital weigh on chip sector as high expectations eclipse strong earnings

Data storage firms, Sandisk and Western Digital, saw their stocks decline on Thursday following earnings that did not meet high expectations in the rapidly growing chip sector. Sandisk shares dropped 13.3% to $1,178, while Western Digital fell 19.1% to $420, marking its steepest one-day loss since April 2025. Despite both companies forecasting revenue that surpassed estimates, the reaction demonstrated the elevated bar set by investors for AI-focused stocks that have experienced impressive gains this year.