Memory stocks slide as strong earnings fail to reassure investors
Western Digital shares fell despite forecast-beating results and a dividend increase, while investors questioned the durability of AI spending.
Strong earnings have failed to reverse losses across memory and storage stocks. Bloomberg reported that Micron, Western Digital, Sandisk and Seagate ranked among the S&P 500’s weakest 10% since June ended, after leading the market earlier in 2026.
Western Digital’s revenue climbed 55% to US$4.38 billion, exceeding forecasts, and the company increased its dividend by 17%. The stock nevertheless lost 3% the following day. Micron’s shares have declined 15% since it reported a record quarter in late September.
Since July began, the declines have exceeded 44% for both Western Digital and Sandisk, compared with 33% for Seagate and 22% for Micron. Despite those losses, each stock remains higher for 2026. Sandisk leads the group with an almost 430% gain.
Joe Tigay, a portfolio manager at Equity Armor Investments, said investors were reconsidering how long the companies’ earnings surge could continue. Concerns include the sustainability of AI spending as borrowing funds more of it. South Korea’s SK Hynix had already shed about half its value between June and August.
