Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) remain mixed as the information technology sector (+0.4%) continues to improve while the broader market largely falls behind.

Sandisk (SNDK 1264.79, -85.71, -6.35%) continues to move off its worst levels of the session after another strong quarter that reinforces the powerful tailwinds across NAND. Adjusted EPS of $39.25 was again well above expectations, while revenue surged 51% sequentially and 371.6% year-over-year to $8.97 billion, also comfortably above expectations. However, SNDK's Q1 adjusted EPS guidance of $44-46 was only in line with expectations, while revenue guidance of $10.3-10.8 billion was slightly below, likely disappointing investors positioned for another sizable upside guide. While the guidance is weighing on SNDK shares today, this was a strong report overall that continues to reinforce NAND as a major beneficiary of rising AI data requirements. The Q1 outlook still implies approximately 15% sequential EPS growth and 18% revenue growth at the midpoint, suggesting today's weakness is more about elevated expectations than any deterioration in demand.

Western Digital (WDC 458.88, -60.30, -11.61%) is also improving but holds a wider loss after delivering a fiscal Q4 beat and guiding Q1 non-GAAP EPS above consensus, as investors appear to have been looking for a more decisive upside surprise after robust recent results from storage peers and a strong pre-earnings rally. While Q1 revenue guidance came in modestly above consensus, it was not strong enough to satisfy elevated expectations, leaving investors focused instead on slower-than-expected exabyte shipment growth, a gross margin outlook that trails Seagate Tech (STX 850.73, +13.07, +1.56%), and questions surrounding WDC's next-generation HAMR transition.