Sandisk, Western Digital drag on chip stocks as lofty expectations eclipse strong earnings

Aug 6 : Data storage companies tumbled in premarket trading on Thursday after quarterly results from Sandisk and Western Digital failed to sustain momentum in an industry that has become one of Wall Street's hottest bets this year.Shares of Sandisk lost 9.2 per cent to trade at $1,226.04, while Western Digital shed 14.6 per cent and was last changing hands at $443.3. After the closing bell on Wednesday, both Sandisk and Western Digital forecast quarterly revenue that beat estimates compiled by LSEG, but fell short of high market expectations.The reaction underscores the high bar set for the market's AI favorites after stellar gains this year, with even strong earnings and upbeat forecasts failing to satisfy investors. Sandisk has soared more than fivefold this year and Western Digital has