Sandisk SNDK.O down nearly 9%, Western Digital WDC.O off over 14% in premarket trading, dragging other chipmakers down, despite both forecasting Q1 revenue above Wall Street estimates.
Seagate Technology STX.O and Micron Technology MU.O down 3.5% each.
U.S.-listed shares of SK Hynix SKHY.O fell 6%.
Intel INTC.O, AMD AMD.O and Marvell Technology MRVL.O were down 1% each.
Stocks come under pressure after massive YTD rallies, with Sandisk up about 469% and WDC up about 201%, versus a 13.4% gain in the Nasdaq .IXIC.
Sandisk forecasts Q1 revenue of $10.30 bln-$10.80 bln, above analysts' estimate of $10.47 bln, according to LSEG-compiled data.
WDC sees Q1 revenue of $4.1 bln, plus or minus $100 mln, compared with analysts' estimate of $4.04 bln.
Both companies continue to benefit from strong AI-driven data center demand.
Analysts at J.P.Morgan say WDC's near-term shipment softness is tied to product transitions, not weaker AI demand, while Sandisk's expanding long-term supply agreements position it for improved visibility and less cyclical earnings.
SNDK is shifting its business model to long-term purchase agreements to increase revenue visibility; CEO says half of fiscal 2027 production is already sold under such deals.
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