Western Digital shares dropped nearly 8% on July 7, with the decline extending into July 8. The stock fell alongside a broader sell-off in the memory and storage sectors. This movement followed Samsung’s announcement of record profits, which triggered a sell-the-news reaction. Investors engaged in widespread profit-taking due to concerns that the AI-driven semiconductor cycle has peaked.
Analyst sentiment remains mixed following the price drop. Susquehanna raised its price target for Western Digital to $500 while maintaining a neutral rating. Fox Advisors recently downgraded the company, citing overly optimistic expectations for hard-disk drive pricing. Additionally, a regulatory filing revealed that Swedbank AB reduced its institutional stake in the company.