Should You Buy the Dip in Western Digital Stock as Google Launches TurboQuant?

Leading data storage manufacturer Western Digital Corporation (WDC), now simply known as WD, has long functioned as the world’s digital warehouse, storing the enormous volumes of data generated by cloud platforms and artificial intelligence (AI) systems. Its core strength lies in high-capacity hard drives, particularly nearline drives that hyperscalers depend upon. Over the past year, that sweet spot translated into strong momentum, as soaring demand for memory and storage, driven by AI, powered the company’s growth. 

However, that momentum hit a sharp break on March 25. The stock came under intense selling pressure after Alphabet’s Google (GOOG) (GOOGL) unveiled TurboQuant, a new compression technology designed to significantly reduce memory usage in large language models and vector search engines. The innovation tackles a major bottleneck known as the key-value cache, which stores frequently accessed information in AI systems.