On August 19, Western Digital declined 3.06% overnight, trading at 481.28 USD/share, with turnover of 12.31 million USD. The storage chip sector came under broad selling pressure as sovereign bond yields surged to multi-decade highs amid concerns over fiscal spending, inflation, and massive bond issuance.
The decline followed a strong rally in the prior session fueled by Elon Musk publicly endorsing storage as the core constraint of the autonomous AI era and Goldman Sachs raising demand forecasts projecting a 24-fold increase in global token consumption by 2030. The sharp reversal reflected classic profit-taking behavior. Sector peers SanDisk fell 3.45%, Seagate Technology dropped 2.83%, and Super Micro Computer declined 2.73%.
Rising long-term borrowing costs hit AI and semiconductor names particularly hard, with the Nasdaq falling 1.33%. Additionally, Bernstein projected Q3 DRAM and NAND contract price increases narrowing to approximately 20%, fueling concerns that the storage price upcycle may be approaching its tail end, further weighing on sector sentiment.
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