Western Digital Corp. (NASDAQ:WDC) stock fell nearly 3% in Thursday premarket trading as technology stocks came under pressure. Nasdaq futures fell 0.97%, while S&P 500 futures declined 0.52%.
Western Digital’s decline appeared tied to the broader market pullback rather than a company-specific development.
The stock has posted strong gains over the past year. That could leave it vulnerable to profit-taking when investors reduce exposure to higher-growth technology names.
Traders will now watch whether buyers defend recent support levels as the broader market weakens.
Memory Industry Outlook
Earlier this month, Roundhill Investments chief investment strategist Drew Pettit said valuations across memory and storage stocks, including Western Digital, remained supported by improving industry fundamentals.
Pettit said memory stocks were pricing in roughly 30% annualized earnings growth over the next five years. Meanwhile, Wall Street estimates suggested growth could reach 35% or more.
He also said industry revenue could grow to roughly three times current levels by 2030, supported by higher memory pricing and rising demand.
Western Digital stock carries a Buy consensus rating with an average price forecast of $649.79.
Citigroup maintained a Buy rating on Aug. 7 while lowering its price forecast to $740. TD Cowen maintained a Buy rating on Aug. 6 and raised its price forecast to $540. UBS maintained a Neutral rating and lowered its price forecast to $525 on Aug. 6.
Technical Analysis
Western Digital remains in a longer-term uptrend. The stock is about 18% above its 200-day simple moving average of $390.42.
However, the intermediate trend has weakened. Shares are about 3% below the 50-day SMA of $475.41 and roughly 10% below the 100-day SMA of $513.56.
The stock remains about 2% above its 20-day SMA of $451.23. However, the 20-day average remains below the 50-day average, signaling weaker near-term momentum.
The relative strength index stands at 53.61, putting the stock in neutral territory.
Resistance sits near $480, while support is around $407.50.
Benzinga Edge Rankings
Western Digital has a Momentum score of 98.8, a Quality score of 96.27 and a Growth score of 99.73, according to the Benzinga Edge Stock Rankings.
Its Value score stands at 5.68.
The rankings point to strong momentum, quality and growth metrics, while valuation remains the stock’s weakest category.
Price Action
WDC Price Action: Western Digital shares fell 2.78% to $460.50 in Thursday premarket trading, according to Benzinga Pro data.
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