CXMT is a Chinese memory chip manufacturer that Apple is reportedly considering partnering with for lower-cost supply.

How could an Apple-CXMT partnership affect Western Digital?

It could increase competition and lower memory prices, pressuring Western Digital's margins in mobile and data segments.

Were other stocks affected by the same factors?

Yes, other memory and semiconductor stocks also fell in the same session.

Western Digital (WDC) Drops 10% on Apple-CXMT Partnership Fears

Western Digital (WDC) shares declined nearly 10% in a sector-wide selloff, driven by concerns over slowing AI chip spending and reports that Apple may partner with Chinese memory supplier CXMT, threatening pricing in high-margin mobile and data markets.

July 4, 2026

2 min read

Source: Simply Wall St.

Key Numbers

decline percent

10%

Western Digital (NasdaqGS:WDC) shares fell sharply by nearly 10% in a session that saw broad selling across semiconductor and memory stocks, according to Simply Wall St.

Possible Causes

Multiple factors weighed on the stock:

Slowing AI Chip Spending: Reports of a pause in AI-related chip spending dampened investor sentiment across the sector.
Apple-CXMT Partnership Talks: Apple is reportedly exploring a partnership with Chinese memory supplier CXMT, raising the risk of lower-cost supply entering Western Digital's markets, particularly in high-margin mobile and data segments.
Macro Headwinds: Broader economic concerns added to the pressure.

Context

The decline comes after a mixed performance over the past month, with memory stocks already under pressure from weak demand for PCs and smartphones. The potential Apple-CXMT tie-up could further squeeze Western Digital's margins by introducing cheaper alternatives.

Similar Moves in the Sector

Western Digital was not alone; other memory and semiconductor stocks also fell, reflecting widespread anxiety over slowing demand and intensifying competition.

Frequently Asked Questions

The stock fell nearly 10% amid a broad semiconductor selloff, driven by concerns over slowing AI chip spending and reports of a potential Apple partnership with Chinese memory supplier CXMT.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.