Dell Technologies Inc. shares plummeted 7.54% in pre-market trading Thursday, extending losses as the broader technology hardware sector came under heavy selling pressure.

The selloff was triggered after storage giants SanDisk and Western Digital issued forward guidance that fell short of market expectations. Despite SanDisk posting record revenue growth and margins, its first-quarter revenue outlook of $103-108 billion came in roughly 5.5% below consensus, sparking a sharp decline across the storage space. Western Digital also declined, dragging down peers such as Seagate and weighing heavily on Dell in sympathy.

Dell had rallied in prior sessions on optimism around AI server demand and a joint NVIDIA investment in AI cloud startup Volta, but the negative sentiment from the storage sector's cautious outlook overshadowed those tailwinds, driving the steep pre-market drop.