Sandisk Weak Guidance Triggers Chip Selloff
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- Sandisk (SNDK) issued revenue guidance that disappointed investors despite better-than-expected quarterly results, sending its shares down about 8% after the opening bell.
- Western Digital (WDC) tumbled nearly 15% even after topping earnings and outlook estimates, leading the sector decline.
- SK Hynix sank about 10% and Samsung Electronics fell nearly 6% in Asia, weighing on South Korea's Kospi index.
- Micron and Seagate each declined about 4% in U.S. trading, while AMD, Intel, Marvell, Arm, and Texas Instruments also traded lower.
- The selloff reflected concerns over softer memory pricing expectations rather than weakening AI demand, with analysts noting that hyperscale data center demand remains resilient but elevated valuations left the sector vulnerable to any signs of slowing growth.
Why it matters: A single disappointing forward-looking guide from Sandisk erased billions across the chip complex — Western Digital fell ~15%, SK Hynix ~10%, Samsung ~6% — yet analysts stressed AI demand from hyperscalers is intact. The takeaway for investors: this is a repricing of memory economics, not a demand collapse, meaning valuations remain the vulnerable point whenever guidance undershoots expectations.
