Key Takeaways
- Western Digital shares declined more than 7% Monday, retreating to approximately $539 during market hours
- SK Hynix experienced its largest single-session decline in history, tumbling over 15% in Asian markets and sparking a sector-wide downturn
- Korean brokerage KIS published Q2 projections for SK Hynix approximately 8% under analyst expectations, pointing to sluggish HBM4 deployment
- Memory rivals including Micron, SanDisk, and Seagate experienced significant losses while major market benchmarks posted gains
- Citi analysts reaffirmed their Buy rating on WDC and lifted their price objective to $800, though selling pressure continued
Shares of Western Digital tumbled more than 7% during Monday’s session, caught in a widespread selloff that hammered memory and storage companies. The stock retreated to approximately $539, representing a substantial decline from its 52-week peak of $799.87.
Western Digital Corporation, WDC
The decline wasn’t driven by company-specific news from Western Digital. Instead, the trouble originated with SK Hynix.
SK Hynix shares collapsed more than 15% during Monday trading in South Korea — marking the most severe single-session loss the company has ever recorded. The selloff came as investors locked in gains following a substantial rally ahead of its Nasdaq debut. The dramatic move dragged South Korea’s Kospi benchmark down 9% and triggered an automatic 20-minute circuit breaker halt.
The contagion spread rapidly across memory stocks. SanDisk dropped more than 6% during premarket trading. Micron’s shares declined over 5%. Seagate experienced losses exceeding 4%. The entire memory sector found itself swept up in the same selling pressure.
Disappointing Forecast from KIS Intensifies Concerns
The situation deteriorated further when South Korean brokerage firm KIS published a second-quarter earnings projection for SK Hynix that fell roughly 8% short of Wall Street’s consensus estimates.
KIS highlighted two key challenges: HBM4 memory chip deliveries were ramping more slowly than anticipated, and SK Hynix’s significant exposure to HBM contracts was constraining its capacity to capitalize on strengthening conventional DRAM pricing.
This forecast was sufficient to unsettle the broader memory market. Market participants began questioning whether the AI-driven memory boom still had substantial runway ahead — or if momentum was beginning to fade.
Chip giants Nvidia, AMD, and Intel all experienced premarket declines as well, with SanDisk and Micron absorbing the most severe losses among American-listed memory companies.
Citi Analysts Stand Behind Bullish Outlook
Not all market watchers are turning bearish. Citi analyst Asiya Merchant reaffirmed her Buy recommendation on WDC Monday while simultaneously increasing her price objective from $685 to $800.
The revision came as part of Citi’s comprehensive second-quarter earnings preview covering the electronic components and equipment industry. Merchant has consistently highlighted constrained supply dynamics and robust AI-related demand as tailwinds supporting Western Digital’s pricing strength.
While the positive call didn’t prevent Monday’s decline, it suggests some Wall Street professionals view the pullback as temporary turbulence rather than a fundamental shift in the investment thesis.
The overall Street sentiment on WDC remains decidedly positive. With 15 Buy recommendations and four Hold ratings issued over the previous three months, the stock maintains a Strong Buy consensus rating.
The mean analyst price target stands at $648.44, suggesting approximately 11% appreciation potential from current trading levels.
The broader American equity market provided no support for memory stocks during the session. The S&P 500 advanced 0.4%, the Dow Jones Industrial Average climbed 0.3%, and the Nasdaq Composite gained 0.3% — clearly demonstrating this was an industry-specific selloff rather than broad market weakness.
WDC’s 52-week high remains at $799.87. With shares now changing hands around $539, a significant gap has opened between current prices and analyst expectations.
Citi’s $800 price target, reaffirmed despite Monday’s weakness, keeps that upside scenario firmly on the table.
