NEW YORK, January 1, 2026, 16:20 ET — Shares of Western Digital Corp fell 2.2% to close at $172.27 in the last trading session of 2025, marking a significant decline as U.S. markets prepared to close for New Year’s Day. This dip followed a remarkable year for the data-storage company, whose stock more than tripled in value throughout 2025, reflecting heightened demand for storage hardware linked to the burgeoning field of artificial intelligence.
The late slide in Western Digital’s stock price came as investors began to reassess their positions after a year of strong gains. The company’s performance has become a crucial indicator of how long major data-center customers will continue to expand their storage capacities and how quickly investors will take profits following a standout year. “It’s perfectly fine in any bull market to have moments of cost,” said Giuseppe Sette, co-founder and president of Reflexivity, discussing the dynamics of profit-taking when market liquidity is low.
In 2025, Western Digital separated its flash business, SanDisk, in February, allowing the company to concentrate on its core offerings of hard disk drives, which are essential for high-capacity data retention. As the technology landscape continues to evolve, Western Digital has positioned itself as a significant player, particularly in the context of AI-driven data demand.
The broader market also faced downward pressure on the last trading day of the year, with the S&P 500 closing down 0.74%. Peers in the storage sector experienced notable declines as well, with Seagate Technology slipping 1.7% and Micron Technology falling 2.5%. The iShares Semiconductor ETF lost 1.2%, and the Nasdaq-tracking Invesco QQQ ended down 0.8%.
As 2025 closed, investors weighed the promise of increased spending linked to AI against uncertainties regarding U.S. trade policy. This mix of enthusiasm and apprehension has kept the market’s risk appetite sensitive to evolving headlines and shifting rate expectations. Technicians are currently monitoring Western Digital’s stock, which traded between $171.26 and $177.00 on Wednesday, with support levels near $170 and resistance around $180 following a pullback from late-December highs above $180.
Looking ahead, investors are focused on forthcoming economic indicators, including the final U.S. manufacturing PMI for December, set to be released by S&P Global on January 2. This purchasing managers’ index measures factory activity, with readings above 50 suggesting expansion. Another closely monitored gauge, the Institute for Supply Management’s manufacturing PMI, is scheduled for January 5, which could provide further insights into market momentum and pricing pressures that often impact cyclical tech and hardware sentiment.
The upcoming U.S. jobs report on January 9 will serve as a critical barometer for rate expectations, followed by the Federal Reserve’s Beige Book on January 14. Policymakers will convene for discussions on January 27-28, potentially influencing future economic conditions. For Western Digital, the next significant event will be its quarterly earnings report, expected in early February, although a specific date has yet to be confirmed. Investors will be eager for insights into data-center storage demand moving forward.
As 2026 begins, traders will be closely observing whether Western Digital’s recent stock pullback stabilizes promptly after year-end rebalancing or if profit-taking will continue to impact AI-linked hardware names. The outcome could provide valuable context for understanding the broader market dynamics as the technology sector navigates the interplay of investor sentiment, economic indicators, and corporate strategies.
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