Sandisk, Western Digital drag on chip stocks as lofty expectations eclipse strong earnings

Peer Seagate Technology STX.O fell 3.6%. Memory chipmaker Micron Technology, which vaulted into the industry's upper echelons after topping $1 trillion in market value in late May, was down 3.7%.

U.S.-listed shares of SK Hynix SKHY.O slid 6.2%. Intel INTC.O fell 1.2%, AMD AMD.O was off 1% and Marvell Technology MRVL.O lost 1.1%.

Still, analysts see data center demand continuing to lift these firms. At Sandisk, revenue from data centers rose more than 400% in 2026 over 2025. It doubled in the fourth quarter, compared to the third quarter.

A global shortage of high-end memory chips has fueled a sharp rise in chip prices, filling the coffers of industry players.

But even as demand for AI data-center components shows few signs of easing, investors are punishing companies at the slightest hint that the growth may normalize.