Memory, Storage Stocks Rebound After Western Digital Earnings Land

Memory and data storage stocks climbed Friday, rebounding after a steep sell-off Thursday.

Hard drive maker Western Digital posted earnings that topped analysts' expectations.

Memory and data storage stocks are shaking off some of their blues.

The Roundhill Memory ETF (DRAM) was recently up about 4%, on pace to post gains for the week, after falling yesterday, a bright spot in Friday morning's generally downbeat market action . The broader iShares Semiconductor ETF (SOXX) was recently about 1.2% higher.

One bit of news behind the action was Western Digital's earnings, which landed last night. Shares of the hard drive maker were recently up 0.5% after posting earnings that exceeded Wall Street's expectations.

Western Digital (WDC) reported adjusted earnings per share of $4.64 on a 55% year-over-year jump in revenue to $4.38 billion for the fiscal first quarter. Both figures topped analysts' estimates compiled by Visible Alpha. The company's second-quarter outlook also exceeded consensus projections.

Still, it may be getting harder for some of the market's biggest AI winners to impress after a big run-up earlier in the year. UBS analysts on Friday clipped their price target on Western Digital to $435 from $470. Both numbers are below the Street average as measured by Visible Alpha's analyst average.

"Demand still significantly exceeds supply and we have a lot of confidence in WDC's technology roadmap and execution, but the narrative is starting to shift here in a way that we think will continue to drive the multiple lower," UBS analysts wrote Friday.

Western Digital's stock has roughly doubled in value from the start of the year, and remains one of the S&P 500's top performers for 2026.

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