WDC - Why Western Digital Plunged Today
2023-10-26 17:21:09 ET
Shares of hard disk drive and NAND flash manufacturer Western Digital (NASDAQ: WDC) plunged today, down 9.3% in today's trading.
Western Digital's end markets in data storage are in a terrible downturn despite the artificial intelligence revolution, which is apparently benefiting the dynamic random access memory (DRAM) industry much more than NAND flash and HDD storage. But investors had held out hope that a merger between Western Digital's NAND business and NAND flash peer Kioxia would potentially lead to a bigger and stronger company while also unlocking value.
However, it appears that the deal, in the works for two years, has been scuttled. Adding insult to injury, Western Digital's HDD peer Seagate delivered worse-than-expected earnings today, increasing the pessimism for the sector.
For further details see:
Why Western Digital Plunged Today