What's Going On With Western Digital And Seagate Shares Today?

Western Digital Corp WDC and Seagate Technology Holdings PLC STX shares are trading higher Monday after Samsung Electronics Co Ltd SSNLF said it would cut memory chip output.

What Happened: Micron on Friday said it would implement "meaningful" cuts to chip production as it faces lower prices due to slowing demand, per Reuters.

"We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured," the company said. 

Samsung did not provide details on the exact size of the planned cuts, but the company said the cuts are currently expected to be short-term moves as it continues to invest in production longer term.

The news comes after the chipmaker reported lower fourth-quarter sales and operating profit. Samsung also issued guidance for the first quarter, noting that it expects consolidated sales of approximately 63 trillion won (47.67 billion) and consolidated operating profit of approximately 0.6 trillion won. 

Western Digital is the largest global producer of NAND flash memory chips for solid-state drives.

Seagate is set to report fiscal third-quarter earnings on April 20. The company is expected to report earnings of 26 cents per share on quarterly revenue of $1.99 billion, according to Benzinga Pro.

See Also: TSMC Seeks Clarity: US Chips Act Subsidy Concerns Prompt High-Stakes Discussions

WDC, STX Price Action: At publication time, Western Digital was up 7.72% at $37.87 and Seagate was up 2.5% at $66.01, according to Benzinga Pro.

Photo: courtesy of Western Digital.