Western Digital's Stock Falls Despite Strong Earnings and Growth
Western Digital (WDC) has fallen about 5% in recent trading sessions to around $435, continuing a decline that has seen the stock drop nearly 46% from its peak of $799.87 on June 18. Despite this downturn, shares have more than doubled since January 2026 when they were at about $172. The company's recent financial performance remains strong: in fiscal Q4 2026 (ended July 3), revenue rose by 44% year-over-year to $3.75 billion, with non-GAAP gross margin expanding significantly and adjusted earnings per share more than doubling from the prior year. Management also provided a positive outlook for fiscal Q1 2027. The drop in stock price is attributed not to poor performance but rather shifting investor sentiment as Treasury yields rise and enthusiasm around AI-linked stocks wanes, leading investors to reprice memory and storage sector stocks.
Tickers: $WDC
Topics: AI demand data centers hard drives stock performance