Why Did WDC, SNDK Stocks Jump In After-Hours Trading Today?

• Seagate reported Q2 revenue and profit above expectations, driven by rising demand for AI data storage.
• Western Digital and SanDisk report earnings on Thursday.
• Memory chip stocks, led by SanDisk, have rallied hard in recent months. 

Shares of Seagate Technology Holdings rallied nearly 10% in after-hours trading on Tuesday, driven by a strong quarterly report, and lifted stocks of peers such as SanDisk and Western Digital, which are set to report results later this week.

Western Digital advanced 6.3% while SanDisk rose 3.5% in the extended session. Micron rose 2.2%, with support coming from the company’s announcement to increase manufacturing capacity in Singapore. 

Seagate reported second-quarter revenue and profit that topped expectations, driven by rising demand for AI data storage. The results highlight how memory-chip makers and adjacent players are responding to a rapid buildup of data centers prompts memory chip firms to produce and sell at capacity. 

“As AI applications amplify the creation and economic value of data, modern data centers increasingly need storage solutions that combine performance and cost-efficiency at exabyte-scale,” Seagate CEO Dave Mosley said.

Notably, Seagate, Western Digital, SanDisk, and Micron have rallied hard in recent months. Stocktwits recently published a concise explainer on how investors should view the memory industry’s current upswing. As of late Tuesday, retail sentiment was ‘extremely bullish’ for STX and MU, ‘bullish’ for SNDK, and ‘neutral’ for WDC.

SanDisk and Western Digital are set to report their quarterly earnings on Thursday, after the market closes.

Analysts expect SanDisk’s second-quarter revenue to rise 43% to $2.7 billion, and adjusted profit of $3.50 per share, according to Koyfin data. The results would put the company’s incredible stock rally since it spun off from Western Digital in February last year to the test.

For Western Digital, analysts expect its second-quarter adjusted sales to decline 32% to $2.9 billion, and adjusted profit to rise 9% to $1.93 per share.

So far this year, SNDK has doubled and leads the group in gains. WDC is up 47%, MU is up 44%, and STX is up 35%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Why Did Intel Stock Jump Over 3% After-Hours?

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