Why Is WESTERN DIGITAL CORP (WDC) Stock Down Today?

Western Digital (NASDAQ:WDC) fell 11.27% to $410.42 in Friday trading after news emerged that Toshiba plans to double its hard drive production capacity for AI data centers. The move signals increased competition in the data storage sector, which has rattled investor confidence in Western Digital and its peers. The stock opened at $446.40, a 3.5% gap down from the previous close, and continued to fall throughout the session, reaching a low of $396.57 before stabilizing slightly.

What Happened

The selloff was triggered by a report from Nikkei that Toshiba will invest $380 million to expand its hard drive production capacity in the Philippines, aiming to double its output by fiscal 2027. This expansion is intended to meet growing demand for data storage in AI applications, a market segment where Western Digital has been a key player. The news prompted immediate selling pressure on WDC, as well as on Seagate Technology (NASDAQ:STX), which fell nearly 13% in the same session. Analysts at Morgan Stanley and Goldman Sachs have suggested that the dip in both stocks may present buying opportunities, but the market reaction has been bearish in the short term.

What The Data Shows

The intraday session showed a sharp decline, with volume reaching 12.9 million shares by 11:35 AM ET, 1.6 times the 3-month average. The stock is now trading near its 22-week low of $407.00, as reported by Trading Economics. Over the past 4 weeks, WDC has lost 7.42%, and over the past 12 months, it has gained 211.33%. Recent insider transactions show nine sales totaling $15.8 million in the last 90 days, with no insider buys recorded. Congressional trades show two purchases of $1,001, $15,000 by Rep. Gilbert Cisneros (D) in July.

What To Watch

Western Digital is not scheduled to report earnings in the near term. Investors should monitor coverage breadth and any follow-up analysis from analysts who have suggested the current selloff could be a buying opportunity.