PomegraWestern Digital Stock Falls 6% as AI Stock Selloff Hits Chips
Why did Western Digital stock fall 6%?
Western Digital (WDC) stock fell more than 6% on Thursday, closing at $354.19, and slipped further after hours despite record results, as an AI stock selloff hit tech shares.
Key numbers
| Revenue | $4.38B+55% YoY |
|---|---|
| Net profit (GAAP) | $1.78Bfrom $4.63 per share |
| Adjusted profit per share | $4.64vs $4.08 expected |
| Next-quarter sales forecast | $5.1Bvs $4.57B expected (per [2]) |
| Gross margin (non-GAAP) | 58.1%from 43.9% a year ago |
| WDC close, Oct 22 | $354.19-6.43% |
What happened
Western Digital (WDC) stock fell more than 6% on Thursday, closing at $354.19, and slipped further after hours despite record results, as an AI stock selloff hit tech shares. Sales rose 55% from a year ago to $4.38B and profit reached $1.78B, with next-quarter sales forecast at $5.1B versus about $4.57B expected. But executives flagged rising costs and higher spending on equipment and factories (capex). The tech-heavy Nasdaq also fell 2.6% on worries about AI spending.
Why it matters
Western Digital shows that strong results may not be enough for AI-linked stocks right now. Investors are worried about how much AI spending costs and who will pay for it, so even fast-growing companies are being sold. Western Digital makes the data storage that AI data centers rely on, so its shares often move with the wider AI trade.
Who this affects
- MarketbearishHigh impact
- Tech investors face broad losses as AI spending worries spread.
- CompanymixedMedium impact
- Record sales help, but a falling share price hurts holders.
- CompetitorsbearishMedium impact
- Seagate and other storage and memory stocks also dropped.
- IndustrymixedMedium impact
- Demand looks strong, but rising costs and capex worry investors.
Western Digital vs Seagate, Sandisk, Micron
How we got here
Meta reports results; its AI spending plans revive investor worries.
Nasdaq falls 2.6% as tech and chip stocks sell off.
Western Digital reports record quarter and raises its dividend 17% to $0.175.
WDC closes down 6.43% at $354.19, then slips further after hours.
What to watch
- Whether AI-linked and storage stocks stabilise when US markets reopen after this selloff.2026-10-26
- Quarterly dividend of $0.175 per share, up 17%, is payable to shareholders.2026-12-17
- Next results, against the company's $5.1B sales forecast and rising input costs.Q1 2027
Educational content only. Not investment advice.
More briefsAll briefs →
Meta Stock Falls 7% After New Share Class Plan
Meta (META) closed at $648.85 as AI spending turned cash flow negative and Nvidia warned of tight funding
RingCentral Stock Jumps 15% After Earnings Beat
RingCentral (RNG) says AI products now top $400M in yearly recurring revenue as it lifts its 2026 forecast
Eurozone Business Growth Slows to 51.9 on Rising Energy Costs
Eurozone composite PMI fell to 51.9 from 53.1, a four-month low, as France shrank, leaving the ECB in a bind.