Western Digital Likely to Recover Faster Than Sandisk Despite Market Volatility
Following a surge in response to Samsung's forecast of worsening memory supply shortages through 2028, Western Digital (WDC) and SanDisk (SNDK) experienced divergent stock movements. While both stocks remain below their all-time highs, the article predicts that Western Digital will recover faster than SanDisk due to stronger guidance from its management. Western Digital's fiscal third-quarter revenue rose 45% year-over-year to $3.3 billion and it guided for continued growth in Q4 with a projected revenue of $3.65 billion. The company also expects improved adjusted earnings per share, which supports the potential for faster recovery. In contrast, SanDisk saw its stock fall by nearly 5%, despite strong third-quarter results including a 251% year-over-year revenue increase and guidance pointing to higher fourth-quarter earnings. The article highlights that while both companies are positioned in the AI data center storage market, Western Digital's path back to record highs is more achievable based on its current trajectory. SanDisk’s recovery would require significantly higher pricing for NAND flash memory or a richer valuation multiple.
Topics: AI data centers earnings guidance memory shortage storage