Memory and Storage Stocks Sink on AI Spending Doubts; Wall Street Still Sees Over 70% Upside

Memory and storage stocks have extended a sharp third-quarter selloff as investors question whether massive AI capital spending will translate into returns, even as Wall Street analysts project more than 70% upside for some names over the next 12 months. Western Digital (WDC) fell 3% on Friday despite reporting results and guidance well above expectations and raising its dividend. Micron (MU) has dropped 15% since late September results beat forecasts. Since the third quarter began, SanDisk (SNDK) and Western Digital are down more than 44%, Seagate (STX) 33% and Micron 22%. SanDisk reports Thursday, with consensus expecting EPS growth above 6,100% year over year. Analysts cite valuations: Micron trades near 5 times forward earnings, SanDisk under 6, versus about 19 for the S&P 500. Seagate's analyst target implies over 70% upside and SanDisk's more than 80%. Meta raised its 2026 capex plan last week; Microsoft, Amazon and Alphabet report this week. Anthropic filed IPO paperwork Monday.