AI-Driven Storage Stocks Plummet by 25 Trillion in a Day

Western Digital Corp (NASDAQ: WDC) saw its share price plunge 11.36% in a single day on June 5, falling to $510 on the Nasdaq. Its market capitalization dropped by about $17.9 billion to roughly $175.8 billion (₩246 trillion), and trading volume reached approximately 7.05 million shares. Analysts attribute the sharp decline to the ex-dividend effect of its $0.15 quarterly payout, worries over share dilution from the exchange of 3.0% convertible bonds maturing in 2028, and a broader correction across the semiconductor and storage sectors.

The company recently announced a deal to restructure roughly $850 million of its 3.0% convertible bonds due 2028, offering bondholders a choice of cash or common stock—reducing debt at the cost of potential dilution. At Computex 2026 and its “Innovation Day 2026,” Western Digital also unveiled ultra–high-capacity HDDs and storage platforms for AI data centers, reinforcing its growth narrative as a key storage partner for AI infrastructure.

Headquartered in San Jose, California, Western Digital is a global supplier of HDD and flash‐based storage solutions for PCs, smartphones, and large-scale cloud and AI data centers. Following the spin-off of its flash business in 2025, the company has refocused on HDDs. In 2026, it simplified its branding to WD and accelerated its roadmap for ultra–high-capacity HDDs and eco-friendly infrastructure strategies aimed at the AI era.