Following Micron Technology's disappointing fiscal 2025 Q2 guidance, Benchmark has downgraded its rating on Western Digital (WDC, Financial) from "Buy" to "Hold." Analyst Mark Miller expressed increasing concerns regarding Western Digital, including weak NAND pricing due to inventory adjustments in the consumer market, ongoing demand slowdown in the industrial and automotive sectors, and a decline in NAND market share.
As a result, Benchmark has revised its fiscal 2025 non-GAAP earnings per share estimate for Western Digital from $8.16 to $7.57 and reduced the full-year revenue forecast from $17.4 billion to $16.7 billion. Over the past three quarters, Western Digital's NAND market share has decreased from approximately 15% to 10.5%. This decline is attributed to the company's focus on the consumer market, which Micron anticipates will not recover until late 2025.
