Western Digital shares drop amid memory sector selloff

Western Digital Corporation shares declined 6.9% in morning trading Friday as a broad selloff swept through the memory and storage sector. The drop followed SanDisk's post-earnings decline, which sparked concern among investors about the sustainability of AI-driven pricing gains in the memory space.

SanDisk reported fiscal first quarter revenue growth of approximately 378% year-over-year and raised its guidance. The company also announced an 8-for-1 stock split. The market's negative response to these results indicated growing skepticism about whether peak valuations in the memory sector have passed.

Western Digital's decline mirrored losses across its peer group. Seagate Technology, Micron, and SK Hynix all posted steep declines in sympathy with SanDisk's drop.

A Form 144 insider filing at Western Digital on October 29 showed a planned sale of restricted securities by an affiliate, adding pressure to the stock.

Western Digital shares are trading well below their 52-week high of $799.87. The stock has faced pressure from competition concerns, including Toshiba's capacity expansion plans and progress by Chinese memory chipmaker CXMT.

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