Sandisk Guidance Sparks Global AI Chip Selloff as Western Digital Slides 15%
Updated
Updated · Yahoo Finance · Aug 6
Sandisk Guidance Sparks Global AI Chip Selloff as Western Digital Slides 15%
3 articles · Updated · Yahoo Finance · Aug 6
Summary
Sandisk fell about 8% and Western Digital nearly 15% on Thursday after Sandisk issued revenue guidance that missed investor expectations despite better-than-expected quarterly results.
The warning rippled through memory and AI chip stocks because investors read it as a sign of softer memory pricing and moderating AI-memory growth expectations, not a collapse in underlying AI demand.
In Asia, SK hynix dropped about 10% and Samsung Electronics nearly 6%, dragging on South Korea's Kospi index as the selloff spread beyond U.S. names.
Micron and Seagate each lost about 4%, while AMD, Intel, Marvell, Arm and Texas Instruments also traded lower, showing how elevated semiconductor valuations amplified the reaction.
Analysts said hyperscale data-center demand remains resilient, but after record results earlier in the cycle, the sector is now vulnerable to any guidance hinting at slower growth.