Western Digital and Intel are up by double digits in 2023, but Goldman Sachs says these shares may see sharp declines. Despite a volatile interest rate environment and a rough third quarter, the Wall Street firm maintains an overall positive outlook on the equity market. Chief U.S. equity strategist David Kostin predicts that the S & P 500 will rise by 5% to 4,500 by year end, citing roughly flat multiples and modest earnings growth.
This summer, Western Digital issued weak guidance for its fiscal first quarter, calling for a loss ranging between $2.10 and $1.80 per share, excluding items. Analysts polled by FactSet called for a loss of $1.43 per share. Goldman also expects chip giant Intel to dive 21%. Shares are already up 35% in 2023. In July, Intel posted second-quarter results that showed a return to profitability following two consecutive quarters of losses.