Chip Stocks Find Buyers After Earnings Shock Shakes Out AI Trade
benzinga_article·- Semiconductor stocks attempted to stabilize following a midweek selloff triggered by cautious forward revenue guidance from companies like Western Digital and AMD. - Market sentiment improved as a weaker U.S. jobs report increased expectations that the Federal Reserve will keep interest rates unchanged, lifting growth stocks. - Global semiconductor sales reached $403.3 billion in the 2nd quarter of 2026, with annual sales projected to surpass $1.5 trillion.Why Is Western Digital Stock Surging on Wednesday?
benzinga_article·- Western Digital shares surged 2.68 % in premarket trading on Wednesday following strong demand for high-capacity hard drives and a sector-wide recovery from recent profit-taking. - The recent market volatility was triggered by South Korea's KOSPI index plummeting 5.99 % after SK Hynix missed operating profit forecasts. - Ahead of its August 5 earnings report, Western Digital holds an EPS estimate of $3.27 and a revenue estimate of $3.69 billion.The AI Memory Trade Is Crumbling: SanDisk, Micron and Western Digital Extend Brutal Selloff
benzinga_article·- Major memory chip stocks including SanDisk, Micron, and Western Digital experienced steep declines, tumbling over 30% to 50% from their late-June highs. - The selloff was triggered by fears that China's memory advancements, such as CXMT's IPO and domestic lithography progress, could expand future supply and pressure industry pricing. - Analysts note the market is confusing commodity memory progress with advanced high-bandwidth memory, while long-term supply agreements and strong fundamentals continue to support AI memory demand.