Western Digital Corp. (NASDAQ:WDC) stock was down 12% on Tuesday as the AI memory trade keeps unwinding and risk appetite stays shaky for high-growth chip names.
The latest leg down tracks a wider selloff across AI memory names after SK hynix Inc. (NASDAQ:SKHY) fell 7.47%, while Micron Technology Inc. (NASDAQ:MU) fell 12.08% on Tuesday. The same wave has been tied to concerns the AI memory rally got overcrowded, plus fresh worries about lower-cost competition as China reportedly makes progress on deep ultraviolet (DUV) lithography machines.
Technical Analysis
From a trend perspective, Western Digital is still up 621.78% over the past 12 months, but the near-term chart is in "pullback mode" after a June swing high and a July swing low. The stock is trading 15.3% below its 20-day SMA ($549.69) and 16.7% below its 50-day SMA ($558.94), which keeps rallies vulnerable to selling pressure.
The more important longer-term tell is that price is still 43.7% above the 200-day SMA ($324.20), and the 50-day SMA remains above the 200-day SMA (a bullish longer-term structure). That said, the 20-day SMA is below the 50-day SMA (bearish), showing the recent downswing has been strong enough to tilt the short-term trend lower.
Earnings & Analyst Outlook
The countdown is on: Western Digital Corp. is set to report earnings on August 5, 2026 (confirmed).
- EPS Estimate: $3.27 (Up from $1.66 YoY)
- Revenue Estimate: $3.69 Billion (Up from $2.60 Billion YoY)
- Valuation: P/E of 29.8x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $577.63 (high: $900.00; low: $250.00) across 41 analysts. Recent analyst moves include:
- Citigroup: Buy (Raises Forecast to $800.00) (July 13)
- Wells Fargo: Overweight (Raises Forecast to $730.00) (July 10)
- Susquehanna: Neutral (Raises Forecast to $500.00) (July 8)
Top ETF Exposure
- Castellan Targeted Equity ETF (NASDAQ:CTEF): 6.72% Weight
- ARS Focused Opportunities Strategy ETF (NASDAQ:AFOS): 5.54% Weight
- Alger 35 ETF (NYSE:ATFV): 6.73% Weight
Significance: Because WDC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
WDC Stock Price Activity: Western Digital shares were down 12.08% at $437.77 on Tuesday, according to Benzinga Pro data.
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