Western Digital Falls Nearly 7% on Tuesday as Tech Stocks Face Selloff

Western Digital Corp. shares fell nearly 7% on Tuesday as investors dumped tech stocks amid broader risk aversion. The Nasdaq declined 1.74%, and the S&P 500 fell 0.65%.

Peers including Seagate Technology Holdings PLC, Sandisk Corp., Micron Technology Inc., and SK hynix Inc. also felt the pressure, as the selloff spread to storage and memory chip stocks. The sector traded lower following SK hynix, after South Korea's government denied a report that it was discussing a semiconductor project as its first investment under a $350 billion commitment to the U.S. A bond market selloff also contributed to broader weakness.

Western Digital's Long-Term Trend

Despite Tuesday's selloff, Western Digital has surged significantly over the past 12 months. The stock has risen approximately 550% during that period.

Additionally, the share price remains well above its 200-day simple moving average of $353.55. However, Western Digital trades about 10% below its 50-day SMA of $551.30 and slightly below its 20-day SMA of $498.75.

The stock's relative strength index stands at 48.89, indicating neutral momentum.

Western Digital's 20-day SMA also sits below its 50-day SMA, signaling recent weakness. Still, its 50-day SMA remains above the 200-day SMA, supporting a longer-term bullish trend.

Resistance is near $576.50, with support around $430.50.

Analyst Outlook

The stock holds a consensus buy rating with an average price target of $649.79.

Citigroup maintained a buy rating on August 7 but cut its price target to $740. TD Cowen maintained a buy on August 6 and raised its target to $540. UBS maintained a neutral rating the same day and lowered its target to $525.

WDC Share Performance

Western Digital shares were down 6.80% at $499.55 at the time of writing on Tuesday.