Western Digital (WDC) Stock: Memory Storage Names Explode After Nvidia CES Keynote

TLDR

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Western Digital stock surged 16.8% to $219.38 after hours following Nvidia CEO Jensen Huang’s CES presentation on new storage technology
Huang introduced “context memory storage” for the Vera Rubin chip platform, designed to speed up AI chatbot responses
Storage sector rallied broadly with SanDisk up 27%, Seagate up 14%, and Micron up 10%, all hitting record highs
SanDisk launched rebranded Optimus NVMe solid-state drives at CES, targeting AI PC and workstation builders
U.S. labor market data due Wednesday and Friday could influence tech stock momentum and rate expectations

Western Digital Corp shares climbed 16.8% to $219.38 in after-hours trading Tuesday. The stock touched $221.16 earlier in the session.

Western Digital Corporation, WDC

The rally came after Nvidia CEO Jensen Huang spoke at CES in Las Vegas. He unveiled a next-generation chip platform called Vera Rubin and introduced “context memory storage” technology.

The new storage feature aims to help AI chatbots handle long questions faster. Investors rushed into data-storage stocks as AI infrastructure demand heats up.

Western Digital makes hard disk drives for cloud, client and consumer markets. The company’s cloud business serves public and private cloud environments.

Storage Stocks Hit Record Highs

Tuesday’s move swept across the entire storage sector. SanDisk jumped more than 27% in the same session.

Seagate Technology gained 14% while Micron rose 10%. All four stocks hit record highs.

“I think we’re going to have a very strong earnings season for Big Tech,” said Jed Ellerbroek, portfolio manager at Argent Capital. He expects capital spending estimates to climb again.

SanDisk used CES to rebrand its internal NVMe solid-state drives as SanDisk Optimus. The top GX PRO tier targets developers, professionals and gamers building AI PCs and workstations.

The updated branding will reach select retailers in the first half of 2026.

Western Digital Guidance and Outlook

Western Digital’s most recent guidance came in October. CEO Irving Tan said the firm was performing well in a “strong demand environment driven by growth of data storage in the cloud.”

CFO Kris Sennesael projected fiscal second-quarter revenue of about $2.9 billion. He also guided for non-GAAP EPS of roughly $1.88.

The company completed the separation of its flash unit into SanDisk on Feb. 21, 2025.

But the rapid price gains leave less room for error. Morningstar analyst William Kerwin said Nvidia’s storage platform “would add more SSD storage to AI infrastructure to improve model speed.”

He warned that current high prices may not hold over the longer term.

Traders will now watch U.S. labor market data for the next catalyst. The Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey on Wednesday, January 7. The December Employment Situation report follows on Friday, January 9.

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