Data storage winners Sandisk, Western Digital fall despite upbeat forecasts
SNDK•Revenue forecasts top estimates
** Sandisk forecast first-quarter revenue of $10.30 billion-$10.80 billion, above analysts' estimate of $10.47 billion, according to LSEG-compiled data.
** Western Digital sees first-quarter revenue of $4.1 billion, plus or minus $100 million, compared with analysts' estimate of $4.04 billion.
AI-driven demand remains a tailwind
** Both companies continue to benefit from strong AI-driven data center demand.
** Analysts at J.P. Morgan said Western Digital'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.
** Sandisk is shifting its business model to long-term purchase agreements to increase revenue visibility; its CEO said half of fiscal 2027 production is already sold under such deals.
Shares fall after strong year-to-date rallies
** Sandisk SNDK.O fell nearly 9%, while Western Digital WDC.O was off over 13% in premarket trading, despite both companies forecasting first-quarter revenue above Wall Street estimates.
** The stocks came under pressure after massive year-to-date rallies, with Sandisk up about 469% and Western Digital up about 201%, compared with a 13.4% gain in the Nasdaq .
