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

Sandisk and Western Digital experienced a significant drop of approximately 10% in their stock prices during pre-market trading, despite announcing strong quarterly earnings.

Market Shift: From AI to Crypto?

On August 6, 2026, Sandisk (SNDK) reported record revenue of $8.97 billion for the fourth quarter and a non-GAAP EPS of $39.25, both exceeding expectations. Western Digital (WDC) also posted impressive results, with revenue of $3.75 billion, marking a 44% year-over-year increase and an improved gross margin of 54.4%. However, disappointing future guidance from both companies has led to their stocks trading nearly 50% below previous highs.

Sandisk's projections for the first quarter forecast revenue of $10.7 billion, lower than the $11.2 billion anticipated by analysts, which raised concerns among investors. While Western Digital's guidance seemed strong, it did not meet the heightened expectations following its recent 500% stock surge.

Over the past year, Sandisk's stock has skyrocketed by over 3,000%, and Western Digital's by more than 550%, largely fueled by the AI sector. This trend has overshadowed traditional investments like cryptocurrencies and precious metals.

As the AI market shows signs of slowing, with gold prices increasing by over 7% recently, Bitcoin remains steady above $64,000, potentially indicating a resurgence in the crypto market. This stability could signal a shift in investor sentiment, as many have previously favored AI investments over cryptocurrencies.

Additionally, Sandisk's board has approved a $14 billion increase to its share buyback program, totaling $15.5 billion. This move may further influence investor perceptions as they reassess their strategies amid changing market conditions.