Western Digital (WDC) and its subsidiary SanDisk (SNDK) shares fell over 4% in pre-market trading on August 24. The decline coincided with broad selling pressure across the semiconductor sector.
Investors cite concerns that co-packaged optics (CPO) technology may disrupt the market for traditional pluggable optical modules. These modules serve as critical components in modern data centers.
The sell-off originated with Asian memory chip stocks before spreading to the U.S. market. This shift impacted major industry players throughout the global supply chain.