Western Digital Shares Plunge Over 5% as Smartphone Market Falls 13%
Western Digital shares plunged over 5% as Nasdaq semiconductor stocks led a 2% drop following Brent crude topping $84 a barrel after Strait of Hormuz shipping closure. The sell-off deepened a memory chip crisis triggered by a record 13% year-on-year smartphone market decline and redirected chip output to data centers.
1. Broad Market Selloff and Western Digital’s Decline
The Nasdaq semiconductor index fell over 2% as Brent crude oil exceeded $84 per barrel on Strait of Hormuz closure fears, dragging Western Digital shares down more than 5%.
2. Record Smartphone Demand Drop Intensifies Memory Crisis
Analysts forecast a 13% year-on-year smartphone market decline in 2026, exacerbating a severe memory chip shortage as manufacturers prioritize higher-margin data center clients over consumer device production.
3. Geopolitical Risks Amplify Tech Sector Pressure
Escalating Middle East conflict stoked concerns of rising inflation and interest rates, prompting investors to reduce positions in high-multiple technology stocks, including chipmakers and equipment suppliers.