SanDisk and Western Digital's stocks fell approximately 10% despite reporting strong earnings due to disappointing forward guidance, as capital may be shifting from AI stocks back to crypto. Over the past year, SanDisk and Western Digital saw significant rises in their stock prices, but their recent less-than-expected outlooks led to declines. The broader financial landscape is shifting, with gold prices rising and Bitcoin maintaining its value above $64,000, suggesting potential for a resurgence in the crypto market.

Crypto CD20$1,755.18CD20 down 0.44 percent0.44% BTC$64,538.82BTC down 0.25 percent0.25% ETH$1,912.09ETH down 0.12 percent0.12% XRP$1.04XRP down 2.57 percent2.57% SOL$73.17SOL down 1.76 percent1.76%

Why Sandisk and Western Digital crashed 10% and what it means for bitcoin

Strong earnings from SanDisk and Western Digital were not enough to satisfy investors, raising questions about whether capital is beginning to rotate from AI winners into crypto.

By James Van Straten |Edited byJamie Crawley

Aug 6, 2026, 11:14 a.m.

2min read

Make preferred on

Share this article

Copy link X iconX (Twitter) LinkedIn Facebook Email

Make preferred on

Sandisk (TradingView)

Summary

Show

Sandisk and Western Digital fell roughly 10% in pre-market trading as their forward outlooks failed to match elevated expectations.
Sandisk and Western Digital have gained more than 3,000% and 550%, respectively, over the past 12 months, propelled by the AI boom and leaving assets such as crypto and precious metals in the rearview mirror.
Now with AI momentum cooling, gold surging and bitcoin holding above $64,000, crypto may be preparing for a resurgence.

Sandisk (SNDK) and Western Digital (WDC), two of the biggest beneficiaries of the AI storage boom, were both 10% lower in pre-market trading Thursday, despite reporting strong quarterly results.

Sandisk posted record fourth-quarter revenue of $8.97 billion and non-GAAP EPS of $39.25, comfortably beating expectations. Western Digital also delivered a double beat, reporting revenue of $3.75 billion, up 44% year over year, while its gross margin surged to 54.4%. Despite those results, both stocks are now trading roughly 50% below their all-time highs.

The problem was guidance. Sandisk’s first-quarter outlook came in below expectations, with projected revenue of $10.7 billion versus the $11.2 billion analysts had estimated. Its EPS guidance also fell short. Western Digital’s first-quarter outlook was solid, but after a 500% run, investors were looking for another blowout beat.

Sandisk and Western Digital have gained more than 3,000% and 550%, respectively, over the past 12 months, propelled by the AI boom and leaving assets such as crypto and precious metals in the rearview mirror.

In addition, Sandisk’s board of directors has also approved an additional $14 billion share buyback program, bringing the total authorization to $15.5 billion.

But with the AI trade beginning to stall, a rotation may be taking shape. Gold has risen more than 7% over the past few days, while bitcoin is holding above $64,000 and shrugging off the Coldcard exploit with little reaction.

Crypto traders may view these indicators as a signal of a change in momentum, given the prevalent narrative that investors have been rotating capital into AI with bitcoin one of the major casualties.

Bitcoin News Artificial Intelligence

Latest Crypto News

1 Tether expands tokenization business into Saudi Arabia, starting with real estate

1 hour ago
2 Crypto for Advisors: Europe's crypto rules, U.S. Preview

2 hours ago
3 JPMorgan says Hyperliquid ETF inflows have stalled as competition mounts

4 hours ago
4 Bitcoin’s low volatility doesn’t necessarily mean low risk

6 hours ago
5 Free Markets and Innovation, Sort Of

6 hours ago
6 JPYC raises $38 million Series B led by major Japanese logistics firm AZ-COM Maruwa

6 hours ago
7 Bitcoin, ether benefit as traders seek safety of largest tokens

6 hours ago
8 NFT startup founder charged with misusing funds from $10 million fundraising

8 hours ago
9 Live updates: BTC holding just above $64,000 ahead of Friday's key jobs data

10 hours ago
10 Bitcoin developers flag 85 critical bugs in an "extremely bad" situation

10 hours ago

Latest Research

The Evolution of the Crypto CEX Landscape: A Case Study on Binance

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

By CoinDesk Research

Jun 29, 2026

Commissioned by Binance

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

Why it matters:

Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

View Full Report

Why Sandisk (SNDK) and Western Digital (WDC) crashed 10% and what it means for bitcoin

Why Sandisk and Western Digital crashed 10% and what it means for bitcoin

Strong earnings from SanDisk and Western Digital were not enough to satisfy investors, raising questions about whether capital is beginning to rotate from AI winners into crypto.