Western Digital Shares Drop Despite AI Storage Promotions; Seagate Falls More
Western Digital (NASDAQ:WDC) shares fell by 4% to $411.34 on Tuesday, despite the company's recent efforts to promote its role in AI storage solutions ahead of an infrastructure conference. The stock remains up significantly year-to-date at 139%, but analysts suggest it needs new hyperscaler orders rather than promotional events or studies to sustain momentum. Seagate Technology (NASDAQ:STX) dropped more sharply, down 5% to $763.35 with no major news from the company itself. In contrast, Micron Technology (NASDAQ:MU) remained stable at $926.38. The divergent performance highlights how memory and HDD sectors are being viewed as separate investment stories in the AI space. The Roundhill Memory ETF (CBOE:DRAM), which includes heavyweights like Samsung and SK Hynix, showed little movement today, reinforcing that the selloff is more of a sector rotation than a broad market decline. The SPDR S&P 500 ETF Trust fell slightly by 0.5%, indicating HDDs are underperforming relative to broader markets.
Topics: AI storage HDD market memory stocks