Western Digital Corp (WDC) stock is falling on Thursday, due to a broad, sector-wide selloff in semiconductor and artificial intelligence (AI) memory stocks driven by massive profit-taking. The Nasdaq is down 0.92% while the S&P 500 has shed 0.11%.
The downward movement extends a decline that began on Wednesday, following a strong multi-month rally. Investors are actively rotating capital out of high-momentum AI hardware and memory chip stocks. SanDisk (SNDK) stock also extended its downward momentum on Thursday from the same sector-wide pressure.
Chinese Competitor Files For IPO
Memory-related chip companies face additional headwinds following news regarding ChangXin Memory Technologies. The Chinese memory peer filed to raise almost $10 billion in a Shanghai initial public offering, signaling growing competition across the global semiconductor sector.
Despite the current downward trend, financial analysts maintain a bullish outlook on the memory-chip maker. On July 1, BofA Securities analyst Wamsi Mohan said that tight NAND supply and demand conditions could persist through 2027, with pricing expected to remain resilient through at least the middle of 2027.
WDC Stock: Key Levels and Momentum Indicators
From a longer-term trend view, the stock is still in an uptrend versus its major baselines, trading 10.4% above its 100-day SMA and 55.4% above its 200-day SMA. But the near-term trend has cooled, with shares now 20.5% below the 20-day SMA and 12.9% below the 50-day SMA — often a sign that the latest leg higher is being digested.
The bigger-picture structure is still constructive because the 20-day SMA remains above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a Golden Cross that occurred in July 2025). Still, after the recent swing high in June and the bearish MACD cross in August.
- Key Resistance: $525
- Key Support: $481
WDC Stock Price Activity: Western Digital shares were down 10.33% at $460.75 at the time of publication on Thursday, according to market data.
