Sandisk and Western Digital are both slated to report earnings after the closing bell Wednesday, in what could be an opportunity for the companies to rekindle investors' enthusiasm for their stocks.

Through Tuesday's close, shares of Sandisk (SNDK) and Western Digital (WDC) have slipped 39% and 31%, respectively, from their June highs amid a broader pullback in the AI trade in recent weeks. Still, both remain among the S&P 500's top performers for 2026, with Western Digital shares more than tripling in value since the year began, while Sandisk shares are up some 500%. The benchmark index has climbed 13% over the same period.

Data storage and memory makers were some of the hottest stocks in the first half of the year, as the AI boom drove up demand. Sandisk, Western Digital, and others were also able to hike prices in the face of industrywide shortages, boosting their sales and profits to record levels. Western Digital used to own Sandisk, acquiring the company in 2016 before announcing plans to spin off the flash memory business in late 2023, with Sandisk returning to the public markets early last year.

Why This Matters to Investors

The reports from Sandisk and Western Digital could mark the latest test of sentiment around the AI trade after recent results from big tech companies showed their spending continues to grow.

Morgan Stanley analysts recently wrote that they see demand for Sandisk's hardware as "unequivocally strong, and durable," with some data center customers concerned demand could continue to outpace supply for the next two years. The analysts also said they expect a strong beat and raised outlook from Western Digital, writing that the results could be "an important catalyst to reignite confidence in the [hard disk drive] bull case, and help to reinforce confidence in the broader AI infrastructure spending cycle."

Western Digital is projected to report fiscal fourth-quarter revenue of $3.71 billion, up 43% year-over-year, along with adjusted earnings of $3.35 per share, nearly doubling from the same time a year ago. Sandisk's revenue is seen more than quadrupling to $8.71 billion, with adjusted EPS of $35.45, up from 29 cents per share in the year-ago quarter, according to estimates collected by Visible Alpha.

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