WDC

The recent selloff of both stocks has been “well overdone,” analysts say.

Western Digital Corporation WDC is set to report first-quarter fiscal 2027 results on Oct. 22, after market close.

More bearish headlines for the AI trade hit Western Digital (WDC) and Seagate (STX) after Wells Fargo slashed price targets for both. Diane King Hall says the lower price targets don't necessarily indicate a heel turn from the firms' bullish stance.

Memory stocks are extending a multi-day slide as a Chinese rival's server memory plans shake a group that had been riding AI infrastructure demand. SanDisk (NASDAQ:SNDK | SNDK Price Prediction) stock has fallen 3% to $1,355.

The AI trade is having a rough week.

Western Digital is now a pure-play HDD supplier, deriving 89% of revenue from cloud hyperscalers with multi-year LTAs extending into 2029. I see WDC as undervalued at 17.7x FY2027 EPS, with consensus projecting EPS to double in FY2027 and rise another 60% in FY2028. Q4 delivered 44% revenue growth, 109% EPS growth, 54.4% gross margin, and 34% FCF margin, all above guidance, with a net cash balance sheet.

SK Hynix (NASDAQ:SKHY) stock is down 5% to $148.70 as China's ChangXin Memory Technologies (CXMT) signals it's aiming a denser chip design at server memory.

Western Digital (WDC) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

Western Digital has beaten earnings five straight times, yet the stock keeps falling as a supply threat from a rival threatens to unravel the entire bullish case that has one Wall Street analyst calling for a massive rebound.

Gareth Soloway of @verifiedinvesting believes Treasury yields are experiencing a near-term top and will move back down to 5% or just above it. However, he argues the AI trade is "collapsing" as investors rotate out of AI memory stocks like Micron (MU), SanDisk (SNDK), and Western Digital (WDC) among others as competition in China from companies like CXMT rises.