--- title: "Western Digital Stock Drops, What Is Going On?" type: "News" locale: "en" url: "https://longbridge.com/en/news/294090473.md" description: "Western Digital (WDC) stock dropped 12% on Tuesday, tracking a broader selloff in AI memory stocks like Micron and SK hynix. The decline reflects unwinding of the AI trade and concerns over overcrowded positions and Chinese competition. Despite a bearish short-term trend with prices below key moving averages, WDC remains up over 600% year-over-year. Analysts maintain a 'Buy' consensus with an average price target of $577.63 ahead of earnings on August 5." datetime: "2026-07-28T15:39:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294090473.md) - [en](https://longbridge.com/en/news/294090473.md) - [zh-HK](https://longbridge.com/zh-HK/news/294090473.md) generator: "portal-rs" --- # Western Digital Stock Drops, What Is Going On? **Western Digital Corp.** (NASDAQ:WDC) stock was down 12% on Tuesday as the AI memory trade keeps unwinding and risk appetite stays shaky for high-growth chip names. The latest leg down tracks a wider selloff across AI memory names after **SK hynix Inc.** (NASDAQ:SKHY) fell 7.47%, while **Micron Technology Inc.** (NASDAQ:MU) fell 12.08% on Tuesday. The same wave has been tied to concerns the AI memory rally got overcrowded, plus fresh worries about lower-cost competition as China reportedly makes progress on deep ultraviolet (DUV) lithography machines. ## Technical Analysis From a trend perspective, Western Digital is still up 621.78% over the past 12 months, but the near-term chart is in "pullback mode" after a June swing high and a July swing low. The stock is trading 15.3% below its 20-day SMA ($549.69) and 16.7% below its 50-day SMA ($558.94), which keeps rallies vulnerable to selling pressure. The more important longer-term tell is that price is still 43.7% above the 200-day SMA ($324.20), and the 50-day SMA remains above the 200-day SMA (a bullish longer-term structure). That said, the 20-day SMA is below the 50-day SMA (bearish), showing the recent downswing has been strong enough to tilt the short-term trend lower. ## Earnings & Analyst Outlook The countdown is on: Western Digital Corp. is set to report earnings on August 5, 2026 (confirmed). - **EPS Estimate**: $3.27 (Up from $1.66 YoY) - **Revenue Estimate**: $3.69 Billion (Up from $2.60 Billion YoY) - **Valuation**: P/E of 29.8x (Indicates premium valuation relative to peers) **Analyst Consensus & Recent Actions:** The stock carries a Buy rating with an average price forecast of $577.63 (high: $900.00; low: $250.00) across 41 analysts. Recent analyst moves include: - **Citigroup**: Buy (Raises Forecast to $800.00) (July 13) - **Wells Fargo**: Overweight (Raises Forecast to $730.00) (July 10) - **Susquehanna**: Neutral (Raises Forecast to $500.00) (July 8) ## Top ETF Exposure - **Castellan Targeted Equity ETF** (NASDAQ:CTEF): 6.72% Weight - **ARS Focused Opportunities Strategy ETF** (NASDAQ:AFOS): 5.54% Weight - **Alger 35 ETF** (NYSE:ATFV): 6.73% Weight **Significance:** Because WDC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. ## Price Action **WDC Stock Price Activity:** Western Digital shares were down 12.08% at $437.77 on Tuesday, according to Benzinga Pro data. *Image via Shutterstock* **Read Next:** - Why Is Micron Technology Stock Falling Tuesday? - Why Is SK hynix Stock Falling Tuesday? ### Related Stocks - [WDC.US](https://longbridge.com/en/quote/WDC.US.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [WDCX.US](https://longbridge.com/en/quote/WDCX.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [WFC.US](https://longbridge.com/en/quote/WFC.US.md) - [CTEF.US](https://longbridge.com/en/quote/CTEF.US.md) - [AFOS.US](https://longbridge.com/en/quote/AFOS.US.md) - [ATFV.US](https://longbridge.com/en/quote/ATFV.US.md) - [WDCVV.US](https://longbridge.com/en/quote/WDCVV.US.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) - [WFC-D.US](https://longbridge.com/en/quote/WFC-D.US.md) - [WFC-L.US](https://longbridge.com/en/quote/WFC-L.US.md) - [WFC-Y.US](https://longbridge.com/en/quote/WFC-Y.US.md) - [WFC-C.US](https://longbridge.com/en/quote/WFC-C.US.md) - [WFC-Z.US](https://longbridge.com/en/quote/WFC-Z.US.md) - [WFC-A.US](https://longbridge.com/en/quote/WFC-A.US.md) ## Related News & Research - [What's Going On With Western Digital Stock Tuesday?](https://longbridge.com/en/news/296917665.md) - [Cynthia Tregillis Sells 1,007 Shares of Western Digital (NASDAQ:WDC) Stock](https://longbridge.com/en/news/297248306.md) - [Western Digital (NASDAQ:WDC) Insider Sells $214,571.28 in Stock](https://longbridge.com/en/news/297248467.md) - [Western Digital Chief Legal Officer Cynthia Tregillis disposes of common shares worth $1,250,449.43](https://longbridge.com/en/news/297243818.md) - [Western Digital Chief Legal Officer Cynthia Tregillis reports disposal of common shares worth $637,440.20](https://longbridge.com/en/news/296835681.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**