Premarket Movers | Synopsys up 4%; Cadence Design Jumps 5%; RXRX Slides 13%; Palo Alto Networks Plunges 8%; APLD Sinks 7%; SanDisk down 1%

SanDisk Corp. fell 1% in premarket trading on Wednesday.

Hard disk drive maker Western Digital plans to raise $3.17 billion by selling some of its stake in former unit Sandisk through a secondary share sale at a 7.7% discount to its last close, the flash drive maker said on Wednesday.

Western Digital is expected to swap the 5.8 million shares up for sale with debt held by affiliates of J.P. Morgan and BofA Securities. The two banks, who are also the lead bookrunners for the offering, will offload the shares on behalf of their affiliates.

Palo Alto Networks reported fiscal second-quarter earnings and revenue that topped Wall Street targets amid its acquisition spree. Palo Alto stock fell 8% in premarket trading on Wednesday as investors mulled guidance and key financial metrics.

The company reported earnings after the market close on Tuesday. In the Palo Alto earnings report, fiscal Q2 profit rose 27% to $1.03 on an adjusted basis. Further, revenue for Palo Alto climbed 15% to $2.6 billion, including acquisitions. Analysts had expected earnings of 94 cents a share on sales of $2.583 billion.

Cadence Design late Tuesday beat Wall Street's targets for the fourth quarter and guided higher than views for the year ahead. CDNS stock rose 5% in premarket trading on Wednesday.

The chip design software firm earned an adjusted $1.99 a share on sales of $1.44 billion in the December quarter. Analysts surveyed by FactSet had expected earnings of $1.91 a share on sales of $1.42 billion. On a year-over-year basis, Cadence earnings and revenue both rose 6%.

APPLIED DIGITAL CORP, WeRide Inc., and Recursion Pharmaceuticals, Inc. dip as Nvidia exits positions

Three stocks took a dip in premarket trading on Wednesday after Nvidia’s 13F filing showed the chip designer sold its stake over the final three months of 2025:

• Applied Digital, a data center operator in which Nvidia was the seventh-largest holder as of the end of Q3. That being said, Nvidia still has some quasi-direct Applied Digital exposure through its still-substantial CoreWeave position. The neocloud acquired warrants in APLD last June.

• WeRide, the Chinese self-driving firm.

• Recursion Pharmaceuticals, which engages in AI-driven drug development.

• Nvidia added positions in Nokia, Intel, and Synopsys in Q4, all of which had been previously announced via press releases. Its Coreweave and Nebius positions were unchanged relative to Q3.