Western Digital Corporation

(NASDAQ Global Select)
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Somewhat Bearish -45

Marvell and Western Digital Just Had Their Worst Week Since 2001

Dividend Guidance raised AI-generated analysis

📉 WDC shares fell approximately 28% in the week ended November 6, 2026, marking its worst weekly decline since September 2001.

💰 The company raised fiscal second-quarter revenue guidance to about $5.1 billion with gross margins projected between 60% and 61%.

🤝 Management cited good visibility up to 2031 and 2031 across its top seven customers, indicating stable demand from major clients.

💵 Western Digital ended the quarter with a net cash position and increased its dividend by 17%.

⚠️ The stock faces risks if anti-data-center policies are enacted or if hyperscalers cut their capital spending plans.

🔮 WDC's custom silicon business is expected to ramp up, with results anticipated in December to confirm progress.

Bullish Signals
  • Western Digital raised its fiscal second-quarter revenue guidance to approximately $5.1 billion with gross margins of 60% to 61%.
  • The company ended the quarter with a net cash position and increased its dividend by 17%.
  • Management provided good visibility up to 2031 and 2031 across its top seven customers, suggesting stable long-term demand.
Risk Factors
  • WDC shares plunged approximately 28% in the week ended November 6, 2026, marking its worst weekly decline since September 2001.
  • The stock faces significant downside risk if anti-data-center policies become law or if hyperscalers reduce their capital spending.
Full Analysis
Western Digital (WDC) shares plunged approximately 28% over the week ended November 6, 2026, marking its worst weekly decline since September 2001. This significant drop occurred despite the company raising its earnings guidance, suggesting the selloff was driven by broader market reactions to election results and sector-wide concerns rather than specific operational failures at Western Digital. The storage hardware sector faced a broad sell-off as investors dumped names like Seagate and SanDisk alongside WDC. While the stock fell below $100 billion in market value, management provided positive forward-looking signals, guiding fiscal second-quarter revenue to roughly $5.1 billion with gross margins between 60% and 61%. The company also highlighted strong visibility up to 2031 across its top seven customers. Western Digital appears sturdier than peers like Marvell following the downturn due to its simpler business model, net cash position, and a recent 17% dividend increase. However, the stock remains vulnerable if anti-data-center policies become law or if hyperscalers reduce capital spending. The company's fiscal second-quarter results are expected to confirm continued ramping of its custom silicon business.