WS #13533
SanDisk and Western Digital fell 10-19% despite strong earnings and record contracted revenue, with analysts arguing the selloff is positioning-driven and the AI storage cycle remains intact. SpaceX shares dropped 13% after reporting $18.4B quarterly capex (sixfold increase) for AI infrastructure, erasing $87B from Musk's net worth and raising concerns about AI spending sustainability. Fed Governor Lisa Cook said she is prepared to back rate hikes if inflation fails to ease, signaling a hawkish tilt that could pressure growth stocks.
AI Storage Selloff vs. Strong Fundamentals
SanDisk and Western Digital fell 10-19% despite strong earnings and record contracted revenue, with analysts arguing the selloff is positioning-driven and the AI storage cycle remains intact.
SpaceX shares dropped 13% after reporting $18.4B quarterly capex (sixfold increase) for AI infrastructure, erasing $87B from Musk's net worth and raising concerns about AI spending sustainability.
Fed Governor Lisa Cook said she is prepared to back rate hikes if inflation fails to ease, signaling a hawkish tilt that could pressure growth stocks.