Western Digital Corp.

(NASDAQ:WDC) stock traded lower Thursday despite reporting fiscal fourth-quarter earnings and revenue that beat Wall Street estimates.

Despite the earnings beat, Western Digital's outlook fell short of elevated investor expectations, triggering a sector-wide pullback in AI memory and storage stocks.

Peers including Seagate Technology Holdings plc (NASDAQ:STX) and Sandisk Corp.

(NASDAQ:SNDK) also traded lower Thursday.