Markets Sandisk and Western Digital Stocks Drop 10%, Implications for Bitcoin

Despite strong earnings reports, Sandisk and Western Digital's stock prices plummeted, sparking speculation about a potential shift in investment focus from AI to cryptocurrency.

By James Van Straten | Edited by Jamie Crawley Aug 6, 2026, 11:14 a.m. 2 min read

  • Sandisk and Western Digital saw a decline of about 10% in pre-market trading as their future projections fell short of investor expectations.
  • Over the last year, Sandisk's stock has surged over 3,000%, while Western Digital's has risen by more than 550%, both driven by the AI sector, overshadowing traditional assets like cryptocurrencies and precious metals.
  • As AI growth slows and gold prices rise, Bitcoin remains above $64,000, hinting at a possible resurgence in the crypto market.

Sandisk (SNDK) and Western Digital (WDC), key players in the AI storage sector, experienced a 10% dip in their pre-market trading on Thursday, despite reporting impressive quarterly earnings.

Sandisk announced record revenue of $8.97 billion for the fourth quarter and a non-GAAP EPS of $39.25, surpassing forecasts. Similarly, Western Digital reported a revenue of $3.75 billion, reflecting a 44% year-over-year increase, and its gross margin improved to 54.4%. However, both companies' stocks are now trading approximately 50% below their peak values.

The primary concern was their guidance. Sandisk's first-quarter forecast indicated revenue of $10.7 billion, which was below the $11.2 billion that analysts had predicted, and its EPS forecast also disappointed. Although Western Digital's first-quarter guidance appeared solid, investors were anticipating another significant performance after a recent 500% increase in stock value.

Over the past year, Sandisk and Western Digital have seen their stock prices soar by over 3,000% and 550%, respectively, primarily due to the AI boom, leaving cryptocurrencies and precious metals trailing.

Furthermore, Sandisk's board has authorized an additional $14 billion for a share buyback initiative, raising the total buyback program to $15.5 billion.

As the AI trend appears to be losing momentum, a market rotation may be underway. Gold prices have climbed over 7% in recent days, and Bitcoin is maintaining its position above $64,000, showing resilience in the face of recent security concerns.

Crypto traders might interpret these developments as a potential shift in market dynamics, especially since there has been a prevailing narrative that capital has been flowing into AI, negatively impacting Bitcoin and other cryptocurrencies.