Cramer Warns SanDisk and Western Digital Stocks Face Risk Amid Storage Demand Concerns
What happened
Jim Cramer warned that SanDisk and Western Digital are dangerous stocks if data center capacity shrinks. He noted that the stocks' recent gains assume hyperscalers continue expanding AI infrastructure. Microsoft spent $115.948 billion on capital expenditures in fiscal 2026 and anticipates $175 billion in fiscal 2027.
From 247wallst.com
Why it matters
The warning suggests that companies whose profits rely on storage prices could be hit first if AI infrastructure spending slows. SanDisk and Western Digital are direct competitors in the memory and storage market. Microsoft's continued high spending on capital expenditures supports current storage demand.
From 247wallst.com
Who's involved
- SanDiskStorage company warned by Jim Cramer regarding stock risk.
- Jim CramerStockbroker who issued warnings about SanDisk and Western Digital.
- Western DigitalStorage company warned by Jim Cramer regarding stock risk.
- MicrosoftCompany driving storage demand through high capital expenditures.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SanDiskSpeculative
Might face market price risk if hyperscaler data center expansion slows down.
- Western DigitalSpeculative
Could face market price risk if hyperscaler data center expansion slows down.
- MicrosoftSpeculative
May see its future storage demand expectations challenged if its massive capital expenditure spending reverses.
- Micron TechnologySpeculative
Could face market price risk due to a potential slowdown in storage commodity demand.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Storage stock risks may slow Amazon's data center expansionStorage stock risks may slow Amazon's data center expansionPossible
- Micron may face margin pressure if storage demand slowsMicron Technology may face margin pressure if hyperscaler spending slowsPossible
- Storage demand concerns may impact Toshiba's hard drive market shareToshiba may face pressure on market share and pricing power amid storage fearsPossible
- Storage sector risks may impact Seagate Technology's revenueStorage sector risks may impact Seagate Technology's revenuePossible
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The entities involved
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SanDisk
American semiconductor company - memory and storage technologies
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Jim Cramer
American stockbroker, television personality, author
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Western Digital
American computer storage corporation
Related events
- Jim Cramer gave Amazon a 'screaming buy' rating on September 3, 2026.
- Jim Cramer warns about yield affecting Microsoft and Nvidia shareholders as rate pressure impacts tech infrastructure costs.
- SanDisk was spun off from Western Digital, amid market shifts and AI memory demand.
- Toshiba, TDK, Seagate, and Western Digital are competing to acquire the magnetic-heads business.
- HDD manufacturers including Seagate, WD, and Toshiba recently paid dividends while Toshiba's capacity increase raises competition fears.