SanDisk and Western Digital plunged 10% in pre-market trading, as strong earnings were overshadowed by weaker-than-expected guidance. Analysts suggest this could signal a rotation of funds from AI stocks to cryptocurrencies.
Storage chip giants Sandisk (SNDK) and Western Digital (WDC) both saw their stock prices fall 10% in pre-market trading on Thursday, despite reporting strong quarterly results. Sandisk's Q4 revenue reached $8.97 billion and non-GAAP EPS was $39.25, both exceeding expectations, but its Q1 revenue guidance of $10.7 billion fell short of analysts' expectations of $11.2 billion. Western Digital also reported revenue of $3.75 billion, a 44% year-over-year increase, with gross margin soaring to 54.4%, but investors were still not satisfied with its guidance. Analysts point out that these two companies had previously surged over 3000% and 550% respectively during the AI boom, and this decline may signal that funds are flowing out of AI-related stocks and beginning to rotate into assets like gold and Bitcoin. Gold has risen over 7% in the past few days, and Bitcoin has remained above $64,000.
Source:CoinDesk · Source Link
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