Track market-moving stories before they get noisy

Axxcess Wealth Management LLC increased its stake in Western Digital Corporation (NASDAQ:WDC – Free Report) by 947.2% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,613 shares of the data storage provider’s stock after purchasing an additional 3,268 shares during the quarter. Axxcess Wealth Management LLC’s holdings in Western Digital were worth $1,642,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently bought and sold shares of the company. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Western Digital during the second quarter worth $28,000. Dunhill Financial LLC acquired a new position in Western Digital in the 2nd quarter valued at $29,000. Stonehage Fleming Financial Services Holdings Ltd bought a new stake in Western Digital in the 2nd quarter valued at $31,000. Gables Capital Management Inc. acquired a new position in shares of Western Digital in the second quarter valued at $32,000. Finally, Ares Financial Consulting LLC grew its stake in shares of Western Digital by 45.5% in the 2nd quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider’s stock valued at $51,000 after purchasing an additional 25 shares during the period. 92.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In
WDC has been the topic of several research analyst reports. BNP Paribas Exane increased their target price on Western Digital from $660.00 to $700.00 and gave the stock an “outperform” rating in a report on Thursday, August 6th. Wedbush boosted their target price on Western Digital from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Monday, July 27th. TD Cowen lowered their price target on Western Digital from $540.00 to $430.00 and set a “buy” rating for the company in a research note on Friday. Summit Insights downgraded shares of Western Digital from a “buy” rating to a “hold” rating in a research note on Thursday, August 6th. Finally, Cantor Fitzgerald cut their target price on shares of Western Digital from $900.00 to $625.00 and set an “overweight” rating on the stock in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $584.00.

Get Our Latest Analysis on Western Digital
Key Western Digital News
Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Western Digital reported fiscal Q1 2027 adjusted EPS of $4.64, above the roughly $4.09–$4.11 consensus, while revenue rose 55.5% year over year to $4.38 billion. Growth was driven by strong cloud and data-center demand, higher-capacity drives and improved pricing. Western Digital Q1 earnings and revenues beat estimates
Positive Sentiment: Management issued substantially stronger-than-expected fiscal Q2 guidance, calling for revenue of approximately $5.0 billion to $5.2 billion and adjusted EPS of $5.60 to $6.00, versus consensus estimates near $4.5 billion and $4.72, respectively. Western Digital forecasts strong second-quarter growth
Positive Sentiment: AI-related storage demand remains durable, with management citing growing requirements from inference, robotics and long-term data retention. Analysts and industry commentators expect HDDs to remain an important, cost-effective storage layer for data centers, potentially supporting demand visibility into 2030–2031. Western Digital CEO discusses durable AI storage demand
Positive Sentiment: Western Digital generated about $1.38 billion in free cash flow and increased its quarterly dividend 16.7% to $0.175 per share. JPMorgan also raised its price target to $650 and maintained an overweight rating. Western Digital Q1 revenue and dividend update
Neutral Sentiment: Other analysts remained bullish but reduced some price targets, reflecting elevated expectations and uncertainty around the pace of future growth. TD Cowen, for example, lowered its target to $430 while retaining a buy rating; Rosenblatt and Cantor Fitzgerald also cut targets but remained positive.
Negative Sentiment: The stock’s strong results were not enough to overcome a broad sell-off in AI, memory and technology shares. Investors are questioning whether hyperscaler capital spending can remain elevated and whether Western Digital’s unusually strong HDD pricing and margins are sustainable.
Negative Sentiment: Higher planned capital expenditures, possible industry supply increases, inventory concerns and execution risks surrounding the HAMR technology transition are weighing on sentiment. Management also acknowledged that HDD price growth could eventually moderate. Western Digital faces capex and supply concerns
Negative Sentiment: A disclosed insider sale of 807 shares worth approximately $306,660 added a modest sentiment overhang, although it was conducted under a pre-arranged Rule 10b5-1 plan and represented only a small portion of the insider’s holdings. SEC insider transaction filing

Insider Buying and Selling
In other news, insider Vidyadhara K. Gubbi sold 1,795 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $459.87, for a total value of $825,466.65. Following the completion of the sale, the insider directly owned 80,571 shares of the company’s stock, valued at $37,052,185.77. This trade represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Irving Tan sold 20,000 shares of Western Digital stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $444.97, for a total value of $8,899,400.00. Following the transaction, the chief executive officer owned 575,966 shares of the company’s stock, valued at $256,287,591.02. This represents a 3.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 25,436 shares of company stock worth $11,340,064. Company insiders own 0.20% of the company’s stock.

Western Digital Stock Performance
Shares of NASDAQ WDC opened at $343.67 on Friday. The stock has a 50 day moving average price of $432.18 and a 200 day moving average price of $479.51. The stock has a market capitalization of $128.64 billion, a PE ratio of 13.34, a price-to-earnings-growth ratio of 1.50 and a beta of 2.11. Western Digital Corporation has a 52 week low of $121.85 and a 52 week high of $799.87.

Western Digital (NASDAQ:WDC – Get Free Report) last posted its quarterly earnings results on Thursday, October 22nd. The data storage provider reported $4.64 earnings per share for the quarter, topping the consensus estimate of $4.11 by $0.53. The firm had revenue of $4.38 billion for the quarter, compared to analyst estimates of $4.14 billion. Western Digital had a return on equity of 56.91% and a net margin of 69.20%. The business’s quarterly revenue was up 55.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.78 EPS. As a group, research analysts forecast that Western Digital Corporation will post 19.69 EPS for the current year.

Western Digital Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be issued a dividend of $0.1750 per share. The ex-dividend date is Friday, December 4th. This is an increase from Western Digital’s previous quarterly dividend of $0.15. This represents a $0.70 dividend on an annualized basis and a yield of 0.2%. Western Digital’s dividend payout ratio is 2.48%.

Western Digital Company Profile
(Free Report)

Western Digital Corporation (NASDAQ: WDC) is a data storage technology company that develops and manufactures hard disk drives (HDDs) and related storage solutions. Its products are used in data centers, cloud infrastructure, enterprise systems, personal computers, gaming platforms and external storage devices.

The company offers HDD-based products for business and consumer applications, including high-capacity drives designed for hyperscale and cloud data centers, enterprise storage environments, network-attached storage systems and personal computing.

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Western Digital's stock has been under pressure since June, when it peaked at $800. Since then, it has fallen more than 52% to its current price of $378, with its market capitalization shrinking from $257 billion to $141 billion. Investors are now looking to the company's upcoming earnings report as a potential catalyst that could help improve sentiment and drive a recovery in the stock's performance.

WDC stock has dropped sharply in the past few months because of the ongoing weakness among companies in the memory industry. A look at all companies in the Roundhill Memory ETF (DRAM) shows that all of them have retreated by double digits from their highest levels this year.

Western Digital stock will likely experience some volatility when it releases its earnings report. The options market show that its implied volatility has jumped to 140%, more than double the historic volatility of 63%. 

Most traders in the options market expect the stock to rebound after its earnings report. The company has a put/call ratio of 0.67, a sign that there are more calls than puts. Most calls are concentrated at $400, 4.5% above the current level. On the other hand, most of the calls are at $375, a few points below where it is today.

Western Digital stock dropped by over 13% after releasing its last results. Before that, its post-earnings moves were usually muted because it was not a popular stock. 

Most recently, however, most memory stocks have remained muted after publishing their financial results. Micron remained in a tight range, even after management released a strong earnings report, which showed that its revenue jumped to $54 billion. 

The upcoming earnings report is expected to show that Western Digital’s revenue continued growing in the first quarter. This growth is happening because of the artificial intelligence boom that has led to vast amounts of data being produced. 

The average estimate among analysts is that Western Digital’s revenue rose by 47% to $4.14 billion, with the most optimistic forecast being $4.27 billion. Its earnings per share is expected to soar from $1.78 in Q1 of last year to $4.08. Based on the recent earnings report, chances are that the company’s real results will be much higher than expected.

Western Digital’s management expects that its revenue growth will continue accelerating, with its gross margin rising to over 50%. Its margins are benefiting from the ongoing shift towards higher-capacity HDDs that are used in the data center industry.

The main risk that Western Digital faces is that its business may see a big supply of HDDs, especially from Chinese companies. 

Western Digital stock chart | Source: TradingView

The daily chart shows that the Western Digital stock has slumped in the past few months, falling from a high of $800 in June to the current $378. Most recently, it formed a descending channel, which is characterized by a series of lower lows and lower highs. It has also dropped below the 200-day Exponential Moving Average (EMA).

The most likely scenario is where the stock rebounds as bulls attempts to retests the upper side of the descending channel at $420. A drop below the lower side of the channel will point to more downside in the near term.

Western Digital has beaten earnings five straight times, yet the stock keeps falling as a supply threat from a rival threatens to unravel the entire bullish case that has one Wall Street analyst calling for a massive rebound.

Western Digital (NASDAQ:WDC | WDC Price Prediction) currently trades at $380.71. Wall Street’s average price target is $668.50, which implies 75.6% upside.

Since spinning off its Flash business into Sandisk (NASDAQ:SNDK) in February 2025, Western Digital has made only hard disk drives. Management says “roughly 80% of data stored in a hyperscale data center resides on hard disk drives,” and that figure puts the company at the center of AI storage spending. The Street-high target of $1,050.00 from Melius Research analyst Ben Reitzes implies 175.8% upside.

The stock has fallen more than 30% and the consensus gap is above 40%. Meanwhile the business keeps beating estimates.

A 32% Slide Despite Five Straight Earnings Beats Supply fears did most of the damage. Nikkei reported that Toshiba plans to invest about ¥60 billion ($380 million) to double hard-disk-drive production capacity by fiscal 2027. That goes straight at the supply discipline that has been driving HDD pricing. A Bloomberg report that Seagate Technology (NASDAQ:STX) and Toshiba are competing for TDK’s magnetic-heads business followed, and WDC fell 6.93% to $411.04 in that session.

The decline started earlier. Western Digital’s fiscal Q4 report showed revenue of $3.75B, up 43.8%, and EPS of $3.56 against estimates of $3.29. Shares still fell roughly 9%–11%, a classic expectations correction. Over three months the stock is down 32.4%, from $563.14. It lost 7.38% in the past week alone, while the S&P 500 slid just 0.13%. With a beta of 2.169, WDC moves harder than the market in both directions.

Analysts Are Focused on Margins and Long-Term Contracts Gross margin is where the bullish argument begins. It rose from 43.9% to 54.4% across fiscal 2026, and guidance for the current quarter calls for 55–56%. Q1 FY27 guidance also points to revenue of about $4.10B and EPS of $4.00. Price per terabyte rose by a high teens percentage year over year, while cost per terabyte fell approximately 8%.

Visibility is the second pillar. Customer demand for long-term agreements reaches out to 2029, 2030, and 2031. According to the CEO, “Visibility remains very strong.” upcoming drivers include the 40TB ePMR ramp and a 44TB HAMR drive due in the first half of calendar year 2027, along with exabyte growth that management estimates at 25% plus. The next earnings report lands October 22.

Analyst view is skewed: 4 Strong Buys, 17 Buys, 5 Holds and zero Sells. After Q4, firms including Cantor Fitzgerald, Bernstein, Morgan Stanley and BofA raised or maintained their targets. Melius goes furthest. It argues that AI storage demand “will severely outpace supply” and that Wall Street underestimates storage earnings power (we featured seven suppliers riding the same AI data-center buildout, from power to cooling to storage, in a report available here). The weak spot is that Toshiba’s expansion challenges the supply assumption that thesis depends on.

Seagate Sold Off Too, While NetApp Ran Past Its Target The two big HDD makers fell together. Flash-focused storage moved the other way.

Seagate trades at $747.20, 34.6% below its 52-week high, after losing 9.92% over the past month. Its $1144.35 target implies 53.2% upside. Of 25 analysts, 22 have a Buy or Strong Buy rating, while 1 rates it Strong Sell. The Street sees less upside here than in WDC.

NetApp (NASDAQ:NTAP) rose 20.2% in a month to $239.01, which is above its $211.69 target and implies 11.4% downside. 12 of its 20 analysts rate it Hold, so targets are trailing the rally.

WDC has the largest implied upside in the group, and it also posts the deepest three-month decline.

WDC Is Still Up 121% This Year After Losing Half Its Peak Value At $380.71, WDC sits 52.4% below its 52-week high of $799.62. The 26 covering analysts set an average target of $668.50, or 75.6% upside. Targets are one data point, and they move after the fact.

Year to date the stock is still up 121.24%, compared with 14.1% for the S&P 500. It trades at a trailing P/E of 14 and a forward P/E of 23.

Supply Discipline Decides Whether This Discount Pays Off Western Digital’s bullish thesis holds if long-term contract pricing holds, margins clear 55% as guided and the HAMR launch stays on schedule. That path supports a return toward the mid-$600s.

It becomes a value trap if Toshiba’s added capacity floods the market, pricing per terabyte rolls over and concentrated hyperscaler buyers push back. HDDs have a long history of boom-and-bust cycles, and the market is pricing in that memory.

I lean bullish. Five straight beats, contracted visibility and a forward multiple in the low 20s give the consensus target real support. The $1,050 call needs a supply-constrained world that Toshiba is actively working to end.

Contact [email protected] for any questions or corrections.

Western Digital survived two brutal price halvings, a five-year dividend blackout, and an activist breakup campaign before AI storage demand rewrote the story. Whether that rewrite holds depends on one unpredictable customer group controlling 89% of revenue.

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A Flash Detour, Two Busts, Then a Hard Drive Revival Ten years ago, Western Digital (NASDAQ:WDC | WDC Price Prediction) had just absorbed SanDisk in 2016. The deal turned a disk-drive manufacturer into a combined flash and HDD giant, and it also linked the company to NAND pricing. NAND busts in 2018-2019 and 2022-2023 gutted earnings. Activist Elliott Management then pressed for a breakup, and in February 2025 the flash unit was spun off as Sandisk (NASDAQ:SNDK). That left WD as a pure-play hard drive company.

The timing lined up with AI storage demand. AI workloads create data that has to be stored somewhere cheap, and management says “roughly 80% of data stored in a hyperscale data center resides on hard disk drives.” Fiscal 2026 revenue rose 35.7% to $12.92B, and non-GAAP EPS reached $10.22.

Your $1,000 Became $10,176, Despite a Five-Year Dividend Gap All figures assume every dividend was reinvested into more shares. They also treat the Sandisk shares from the spin-off as rolled back into WD. The S&P 500 figures use the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) on a price-only basis.

1-Year Return

Initial Investment: $1,000 Current Value: $3,342 (price only: $3,336) Total Return: 234.18% S&P 500 (same period): $1,158 (15.78%) 5-Year Return

Initial Investment: $1,000 Current Value: $9,398 (price only: $9,352) Total Return: 839.75% Annualized Return: 56.53% S&P 500 (same period): $1,769 (76.94%) 10-Year Return

Initial Investment: $1,000 Current Value: $10,176 (price only: $9,021) Total Return: 917.64% Annualized Return: 26.11% S&P 500 (same period): $3,603 (260.28%) Over the decade, reinvested dividends added about $1,156. Almost all of it came from the $0.50 quarterly payouts made through April 2020. After that, the record shows no payments until June 2025, so reinvestment stopped compounding for five years. That gap is why the 5-year figures barely differ. The dividend came back at $0.10 and now stands at $0.15.

Holding on took heart. The adjusted price fell 58.8% between March and December 2018 and 51.6% during 2022. A 2016 buyer paid $39.31 (adjusted) and was sitting at just $42.57 five years later. Today the stock sits 50% below its 52-week high of $799.62 after a sharp October 2 selloff.

What Must Go Right Before Another Halving Currently, the case for Western Digital today holds if AI keeps exabyte demand growing “25% plus” and long-term agreements stretching toward 2031 lock in pricing. Guidance calls for about $4.10B in revenue and $4.00 in EPS next quarter, and the stock trades at about 23x forward earnings.

The case weakens if hyperscaler capex cools. Cloud customers make up 89% of revenue, and storage cycles have halved this stock twice in a decade.

The result hinges on whether hyperscaler demand holds. This decade shows what it takes to hold a cyclical business: you sit through five flat years and two halvings, and nearly all the return shows up in one year. The investors who got paid were the ones still holding when the cycle turned.

Contact [email protected] for any questions or corrections.

Seagate Technology (STX) stock and shares of hard-disk drive rival Western Digital (WDC) slid early Friday, following a report that Toshiba is ramping up production of its drives.

Japan-based Toshiba plans to double production capacity for hard-disk drives used in data centers during its fiscal 2027, Nikkei reported. The news has clearly prompted concern among investors in Seagate and Western Digital, which dominate the market for hard-disk drives, or HDDs.

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On the stock market today, Seagate stock was down 10% at 847.86 in premarket trades. Western Digital stock dropped 7% to below 430.

Toshiba is a distant third in the global HDD market. But analysts have previously warned that the Japanese tech conglomerate could ramp up production in response to soaring data storage demand from AI. Hard-disk drives store about 80% of data within most cloud data centers, according to Western Digital's estimates.

The huge data center buildout has prompted a major rally for shares of Seagate and Western Digital, which recently rebranded as WD. Both companies have reported supply shortages that they are racing to meet by offering denser drives that hold more data.

Western Digital stock is ahead 168% year-to-date through Thursday, while Seagate is up 248%. Both companies have seen their rallies ease in recent weeks after a blistering first half of the year, however.

Seagate stock closed Thursday trading within a 14-week consolidation, according to IBD MarketSurge. However, shares appear set to break below their 50-day moving average once Friday's session begins.

Western Digital is 42% below its high from June and already trading below its 50-day.

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Western Digital Corp. (NASDAQ:WDC) is entering a stronger growth phase as rising data-center storage demand, higher pricing and next-generation HDD technologies support its revenue, margins and cash generation.

S&P Global sees Western Digital benefiting from strong hard-disk-drive demand, AI-related storage needs and improving pricing, which it expects to drive rapid revenue, margin and cash-flow growth through fiscal 2028.

The ratings firm revised its outlook on Western Digital to positive from stable and affirmed its ‘BBB-’ issuer credit rating, citing stronger cash generation and low leverage.

AI Storage Demand Supports Revenue GrowthS&P Global said on Thursday that rising storage requirements for AI training, inference and AI-generated data are strengthening HDD demand.

Western Digital’s revenue grew nearly 36% in fiscal 2026, while its EBITDA margin expanded by 1,150 basis points.

S&P Global expects revenue to increase about 44% in fiscal 2027, followed by another 30% in fiscal 2028.

It projects roughly 1,000 basis points of EBITDA margin expansion in fiscal 2027, supported by stronger demand, price increases, operating leverage and adoption of technologies including UltraSMR and ePMR.

S&P Global also expects Western Digital’s progress qualifying its next-generation heat-assisted magnetic recording, or HAMR, technology to support future growth and margin improvement.

Free Cash Flow Could Reach $5 BillionS&P Global expects Western Digital to increase capital spending as it invests in recording heads, media, automation and its transition to HAMR.

Despite those investments, it projects free cash flow will rise to about $5 billion in fiscal 2027, compared with $3.5 billion in fiscal 2026 and $1.2 billion in fiscal 2025.

The firm expects Western Digital to maintain a net cash or near-net cash position while returning meaningful capital to shareholders through dividends and share repurchases.

Low Leverage Supports Credit ProfileS&P Global expects leverage to remain low and sees limited risk of a transformational acquisition because of the concentrated structure of the HDD industry.

The ratings firm said Western Digital’s conservative balance sheet should also cushion the effect of future industry downturns.

Still, customer concentration remains a risk. Western Digital’s three largest customers represented 16%, 15% and 13% of fiscal 2026 revenue, while data center storage generated 89% of revenue.

S&P Global said the industry’s shift toward build-to-order sales should improve revenue visibility and reduce some earnings and cash-flow volatility. HDDs also continue to maintain a cost-per-bit advantage over NAND storage.

What Could Change The RatingS&P Global could consider an upgrade if free cash flow rises to $5 billion-$6 billion and continues expanding, gross margins show lasting improvement, SSDs do not materially displace HDD demand, Western Digital maintains its technology position and leverage stays low.

Conversely, the firm could return the outlook to stable if weaker AI or traditional IT spending creates HDD oversupply, free cash flow falls short of expectations or an acquisition weakens the balance sheet enough to push expected net leverage above 1.5 times.

Top ETF Exposure Alger Concentrated Equity ETF (NYSE:CNEQ): 4.03% Weight Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF): 3.84% Weight Alger 35 ETF (NYSE:ATFV): 5.49% Weight Significance: Because WDC carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price ActionWDC Stock Price Activity: Western Digital shares were up 0.51% at $452.59 at the time of publication on Friday, according to Benzinga Pro data.

Image via Shutterstock

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Western Digital Corporation (NASDAQ:WDC – Get Free Report)’s share price shot up 4.1% during mid-day trading on Friday . The company traded as high as $448.85 and last traded at $441.36. 13,391,193 shares were traded during mid-day trading, an increase of 56% from the average session volume of 8,606,059 shares. The stock had previously closed at $423.87.

Trending Headlines about Western Digital Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Western Digital’s latest quarterly results remain a key support: revenue grew 44% year over year, earnings exceeded expectations, margins expanded and cash generation was strong. Its first-quarter 2027 earnings outlook also implied continued substantial year-over-year growth. Western Digital rises as investors weigh strong fundamentals, debt cleanup, and a firmer storage trade Positive Sentiment: The company’s plan to redeem its remaining 3.00% convertible notes due in 2028 is being viewed favorably because it could simplify the capital structure and reduce future dilution. The notes became redeemable after WDC’s share price surpassed the required threshold, signaling sustained investor confidence. What’s Going On With Western Digital Stock Friday? Positive Sentiment: Strength in storage peers, particularly SanDisk, Micron and the broader AI-infrastructure trade, provided a favorable read-through for WDC. Investors continue to anticipate durable demand for data-center storage driven by artificial intelligence. Analysts’ recent price targets also remain generally above the current trading level. SanDisk Jumps as Storage Bid Concentrates in One Name; Western Digital Rises, Micron Ticks Up Neutral Sentiment: Recent commentary comparing WDC with SanDisk highlights different exposure to HDDs and NAND flash, as well as varying margins and risks. This reinforces the long-term AI-storage opportunity but also underscores that the companies’ growth profiles are not identical. Western Digital vs. SanDisk: Which Storage Stock Is the Better Bet? Negative Sentiment: Insider trading data is a cautionary signal: reported open-market insider activity over the past six months consisted entirely of sales, with no purchases. In addition, WDC recently experienced a pullback and has traded below its 50-day and 200-day moving averages, indicating ongoing volatility despite the improving fundamentals. Analyst Upgrades and Downgrades A number of equities analysts recently commented on WDC shares. Mizuho set a $590.00 price target on shares of Western Digital in a research report on Thursday, August 6th. Summit Insights downgraded Western Digital from a “buy” rating to a “hold” rating in a report on Thursday, August 6th. Cantor Fitzgerald lifted their price target on shares of Western Digital from $660.00 to $900.00 and gave the company an “overweight” rating in a report on Monday, June 29th. Barclays increased their target price on Western Digital from $450.00 to $620.00 and gave the company an “overweight” rating in a research report on Wednesday, May 27th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $676.00 price target on shares of Western Digital in a report on Thursday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Western Digital currently has a consensus rating of “Moderate Buy” and a consensus price target of $534.56.

Read Our Latest Research Report on Western Digital The business has a 50-day moving average of $479.41 and a 200 day moving average of $457.05. The firm has a market capitalization of $152.13 billion, a P/E ratio of 18.23, a price-to-earnings-growth ratio of 1.87 and a beta of 2.13.

Western Digital (NASDAQ:WDC – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.25. The business had revenue of $3.75 billion during the quarter, compared to the consensus estimate of $3.70 billion. Western Digital had a net margin of 72.95% and a return on equity of 48.15%. Western Digital’s revenue was up 43.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.66 EPS. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. As a group, research analysts forecast that Western Digital Corporation will post 19.65 EPS for the current year.

Western Digital Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Tuesday, September 8th were issued a dividend of $0.15 per share. The ex-dividend date was Tuesday, September 8th. This represents a $0.60 annualized dividend and a yield of 0.1%. Western Digital’s dividend payout ratio is 2.48%.

Insider Transactions at Western Digital In related news, insider Cynthia L. Tregillis sold 432 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $451.20, for a total transaction of $194,918.40. Following the completion of the sale, the insider directly owned 111,030 shares of the company’s stock, valued at approximately $50,096,736. This trade represents a 0.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vidyadhara K. Gubbi sold 1,795 shares of Western Digital stock in a transaction on Friday, September 4th. The stock was sold at an average price of $459.87, for a total value of $825,466.65. Following the sale, the insider owned 80,571 shares in the company, valued at $37,052,185.77. The trade was a 2.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,437 shares of company stock worth $11,461,345 in the last quarter. 0.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Western Digital Institutional investors have recently bought and sold shares of the company. Handelsbanken Fonder AB boosted its position in Western Digital by 71.4% during the second quarter. Handelsbanken Fonder AB now owns 230,578 shares of the data storage provider’s stock worth $147,275,000 after purchasing an additional 96,078 shares during the period. Nomura Asset Management Co. Ltd. boosted its stake in Western Digital by 33.6% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 1,122,095 shares of the data storage provider’s stock valued at $193,303,000 after buying an additional 282,156 shares during the period. OMERS ADMINISTRATION Corp purchased a new position in Western Digital during the second quarter worth about $19,694,000. NewEdge Wealth LLC bought a new position in shares of Western Digital in the second quarter worth approximately $14,466,000. Finally, OneAscent Financial Services LLC bought a new stake in shares of Western Digital during the 2nd quarter worth $1,599,000. Hedge funds and other institutional investors own 92.51% of the company’s stock.

About Western Digital (Get Free Report)

Western Digital Corporation (NASDAQ: WDC) develops, manufactures and sells data storage products and solutions for data centers, cloud service providers, enterprises, businesses and consumers. Its portfolio is centered on hard disk drives (HDDs), including high-capacity enterprise drives used in cloud and data center environments, as well as products for network-attached storage, surveillance and personal computing.

The company markets products under brands including Western Digital, WD, WD_BLACK and Ultrastar.

Further Reading Five stocks we like better than Western Digital Lennar’s Earnings Miss May Be Sending a Bigger Warning About U.S. Housing Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits These 3 Agentic AI Stocks Have More Than Hype Behind Their Growth Stories Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike Receive News & Ratings for Western Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Western Digital and related companies with MarketBeat.com's FREE daily email newsletter.

Shares of Western Digital Corp. (NASDAQ:WDC) are trading lower Friday afternoon as storage and semiconductor equities faced broad-based selling following a software efficiency breakthrough from AI developer DeepSeek.

Here’s what investors need to know.

Western Digital shares are experiencing downward pressure. Why is WDC stock trading lower? DeepSeek V4.1 Flash Model Sparks Hardware Efficiency AnxietiesThe sector-wide downturn stems from the release of DeepSeek’s V4.1 Flash model, which dramatically reduces hardware overhead by requiring just one-quarter of the High Bandwidth Memory capacity and one-eighth of the SSD storage compared to previous model iterations.

The steep reduction sparked concerns across Wall Street that if rival AI developers replicate similar algorithmic optimizations across global large language models, baseline hardware intensity and memory consumption per deployment could decelerate.

Mass-Capacity HDD Strategy Provides Structural Buffer Against Flash DragAs detailed in Western Digital’s SEC filings, the company’s pure-play focus on high-capacity hard disk drives following the separation of its flash business into SanDisk partially insulates the enterprise.

Benchmark reports from enterprise market research firms TrendForce and IT Part Supply highlight that hyperscale cloud providers building massive data lakes for generative AI continue to rely heavily on WDC’s mass-capacity HDDs due to their persistent 6-to-10x cost-per-terabyte advantage over enterprise SSDs for cold and warm storage tiers.

Furthermore, Western Digital’s official technology roadmap confirms its 40TB UltraSMR ePMR drives are currently in volume customer qualifications, while supply chain intelligence from market analysts shows nearline storage lead times remain extended, proving core HDD architecture remains essential to cloud hyperscalers regardless of short-term LLM software optimizations.

Strong Q4 Results and Upbeat Guidance Underpin Long-Term OutlookThe pullback comes on the heels of strong operational momentum delivered in Western Digital’s fourth-quarter fiscal 2026 financial report on Aug. 5. WDC generated $3.75 billion in revenue, up 44% year-over-year, and posted adjusted EPS of $3.56, handily topping Wall Street consensus estimates of $3.31.

Supported by a 54.4% non-GAAP gross margin and $3.51 billion in full-year free cash flow, management guided September-quarter revenue to $4.1 billion with expected EPS of $4.00.

WDC Shares Drop Friday AfternoonWDC Price Action: Western Digital shares were down 2.88% at $447.66 at the time of publication on Friday, according to Benzinga Pro data.

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Key Takeaways Western Digital ended fiscal 2026 with $3.51 billion in free cash flow and about $500 million in net cash.WDC returned $3.1 billion to shareholders in fiscal 2026 through dividends and share repurchases.WDC expects fiscal Q1 revenue of $4.1 billion, plus or minus $100 million, and non-GAAP EPS of $4.00. Western Digital Corporation (WDC - Free Report) entered fiscal 2027 with stronger cash generation and a net cash position after a year of significant shareholder returns. In fiscal 2026, operating cash flow reached $3.93 billion, up 132% year over year, while free cash flow (FCF) rose 145% to $3.51 billion. With fiscal 2026 revenues of $12.9 billion, FCF margin was about 27%. Capital expenditures totaled $418 million for the year.

The company returned $3.1 billion to shareholders during fiscal 2026 through dividends and share repurchases. In the fiscal fourth quarter, Western Digital generated $1.4 billion in operating cash flow and $1.3 billion in free cash flow, equal to a 34% FCF margin. It reported repurchases of 2.3 million shares for $1 billion and paid $54 million in dividends. Management noted that the repurchase figures included $328 million used to settle the conversion premium on certain convertible notes in cash instead of stock, avoiding roughly 773,000 new shares. Western Digital also monetized its remaining 1.7 million SanDisk Corporation (SNDK - Free Report) shares by exchanging them for 4.8 million Western Digital shares.

At fiscal year-end, Western Digital held $1.6 billion in cash and $1.1 billion in debt, resulting in a net positive cash position of about $500 million. On the last earnings call, management highlighted that there was no change to the company’s strategy and reaffirmed its commitment to returning FCF to shareholders through dividends and share repurchases. The board also declared a 15- cents-per-share dividend payable Sept. 17, 2026, to shareholders of record on Sept. 8.

For the first quarter of fiscal 2027, Western Digital expects revenue of $4.1 billion, plus or minus $100 million, gross margin of 55-56%, operating expenses of $390-$400 million, interest and other expenses of about $15 million, a 17% tax rate and non-GAAP EPS of $4.00, plus or minus 15 cents, based on roughly 388 million diluted shares.
Management stated that demand and favorable pricing to continue, while investments are being made in heads, media operations and automation without adding unit-capacity capital expenditures. Western Digital is on track to ship its 44-terabyte HAMR product in the first half of calendar 2027.

Taking a Look at WDC’s CompetitorsSeagate Technology (STX - Free Report) delivered strong profitability and cash flow in fiscal 2026, supported by operating leverage, pricing and disciplined spending. Non-GAAP operating margin expanded to 44.6% from 26.2% a year earlier, while June-quarter free cash flow reached $1.12 billion, or about 31% of revenues. Fiscal 2026 FCF hit a record $3.1 billion. Financial flexibility also improved as gross debt fell $1.4 billion, leaving net leverage at 0.4 times adjusted EBITDA. Seagate later retired $1 billion of high-yield notes and plans to eliminate the remaining convertible notes, reducing interest expense and supporting shareholder returns and future technology investments and growth initiatives.

SanDisk’s strong cash generation supports continued shareholder returns and technology investments. Adjusted free cash flow reached $5.04 billion in fourth-quarter fiscal 2026, representing a 56% margin, excluding $1.94 billion of NBM  prepayments and deposits. The company ended fiscal 2026 with $4.76 billion in cash and no long-term debt. Sandisk repurchased $4.5 billion of shares during the quarter and expanded its authorization by $14 billion, leaving $15.5 billion available. Management plans to invest in BiCS8 and BiCS10 while maintaining buybacks. Fiscal 2027 capital spending is expected to decline to roughly 6% of revenues.

WDC Price Performance, Valuation and EstimatesIn the past year, shares of WDC have surged 406% compared with the Zacks Computer-Storage Devices industry’s growth of 392.8%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 20.86 forward earnings compared with 10.67 for the industry.

Image Source: Zacks Investment Research

WDC’s estimate revisions are currently on an upward trajectory. The Zacks Consensus Estimate for the company’s earnings for fiscal 2027 has been revised upward by 7.5% to $20.03 over the past 60 days, while the same for fiscal 2028 has gone up 7.6% to $34.74.

Image Source: Zacks Investment Research

Currently, Western Digital has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avala Global LP bought a new position in shares of Western Digital Corporation (NASDAQ:WDC – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 189,100 shares of the data storage provider’s stock, valued at approximately $120,782,000. Western Digital accounts for 4.5% of Avala Global LP’s portfolio, making the stock its 7th largest holding. Avala Global LP owned 0.05% of Western Digital at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in WDC. Norges Bank purchased a new stake in shares of Western Digital in the fourth quarter worth $788,729,000. Northern Trust Corp raised its position in shares of Western Digital by 11.2% during the 3rd quarter. Northern Trust Corp now owns 3,805,463 shares of the data storage provider’s stock valued at $456,884,000 after purchasing an additional 384,103 shares during the period. Soroban Capital Partners LP lifted its stake in shares of Western Digital by 1,926.3% during the 2nd quarter. Soroban Capital Partners LP now owns 3,061,134 shares of the data storage provider’s stock valued at $195,882,000 after buying an additional 2,910,062 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Western Digital by 70.4% during the 4th quarter. AQR Capital Management LLC now owns 2,972,703 shares of the data storage provider’s stock valued at $512,107,000 after buying an additional 1,228,661 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Western Digital by 6.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,809,409 shares of the data storage provider’s stock worth $483,977,000 after buying an additional 159,167 shares during the period. Hedge funds and other institutional investors own 92.51% of the company’s stock.

Western Digital News Summary Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Western Digital disclosed exchange agreements covering approximately $191 million of its 3.00% convertible notes due 2028. The transaction will provide holders with cash and shares, potentially reducing debt, although the stock component could create some dilution. The exchanges are expected to close on or after September 2. Western Digital convertible notes article Positive Sentiment: Investors continue to see support from AI, cloud and data-center demand. Western Digital recently reported quarterly revenue of $3.75 billion, up 43.8% year over year, and non-GAAP EPS of $3.56 versus the $3.31 consensus. Management’s next-quarter outlook also points to continued strong growth. Western Digital debt exchange and AI demand analysis Positive Sentiment: A hammer chart pattern suggests technical support after the stock’s recent decline, while upward earnings-estimate revisions may improve the likelihood of a near-term rebound. Western Digital bottoming pattern article Neutral Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Moderate Buy” rating and a median recent price target of approximately $597.50. However, targets vary widely, reflecting uncertainty around valuation and execution. Negative Sentiment: Western Digital is assessing potential effects from new U.S. sanctions related to Iran, including possible compliance costs, supply-chain disruptions and impacts on contract manufacturing or shipments. Western Digital Iran sanctions exposure article Negative Sentiment: Insider activity has been heavily weighted toward sales, including transactions by executives and directors. The reported sales were made under pre-arranged trading plans, reducing their significance, but they remain a potential overhang for sentiment. Negative Sentiment: Broader caution toward highly valued AI and memory stocks, ahead of Nvidia’s earnings, and concerns about potential Chinese memory competition could pressure sector valuations and future pricing. Western Digital Stock Up 4.0% Shares of Western Digital stock opened at $468.88 on Thursday. Western Digital Corporation has a twelve month low of $77.90 and a twelve month high of $799.87. The business has a 50-day moving average price of $538.41 and a 200-day moving average price of $438.22. The firm has a market cap of $161.61 billion, a price-to-earnings ratio of 19.37 and a beta of 2.14. Western Digital (NASDAQ:WDC – Get Free Report) last posted its earnings results on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, topping analysts’ consensus estimates of $3.31 by $0.25. Western Digital had a return on equity of 48.15% and a net margin of 72.95%.The company had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.70 billion. During the same period in the previous year, the business earned $1.66 earnings per share. The firm’s revenue for the quarter was up 43.8% on a year-over-year basis. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, equities analysts expect that Western Digital Corporation will post 19.65 EPS for the current fiscal year.

Western Digital Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Tuesday, September 8th. Western Digital’s dividend payout ratio is currently 2.48%.

Wall Street Analysts Forecast Growth A number of brokerages have issued reports on WDC. JPMorgan Chase & Co. increased their price target on Western Digital from $530.00 to $650.00 and gave the stock an “overweight” rating in a research note on Friday, June 12th. Bank of America upped their price objective on Western Digital from $610.00 to $732.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Zacks Research upgraded Western Digital from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, May 6th. Citigroup cut their target price on Western Digital from $800.00 to $740.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Finally, Melius Research set a $1,050.00 price target on Western Digital and gave the stock a “buy” rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $534.56.

Get Our Latest Stock Report on WDC

Insider Activity In related news, insider Vidyadhara K. Gubbi sold 2,475 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $556.24, for a total value of $1,376,694.00. Following the completion of the transaction, the insider directly owned 85,154 shares of the company’s stock, valued at approximately $47,366,060.96. This trade represents a 2.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Irving Tan sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $444.97, for a total transaction of $8,899,400.00. Following the completion of the sale, the chief executive officer owned 575,966 shares in the company, valued at $256,287,591.02. This represents a 3.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 24,634 shares of company stock worth $11,357,073. 0.18% of the stock is currently owned by insiders.

Western Digital Profile (Free Report)

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

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Key Takeaways Western Digital posted 44% Q4 revenue growth, an earnings beat and a 54.4% non-GAAP gross margin.WDC sees Q1 fiscal 2027 revenue near $4.1B, with a non-GAAP gross margin of 55%-56% and EPS near $4.Western Digital's 40TB ePMR is in volume production, with 44TB and 50TB HAMR ramps planned for 2027. Western Digital Corporation (WDC - Free Report) ended fiscal 2026 with a fourth-quarter earnings beat, 44% revenue growth and sharply higher margins. The results give the company a strong starting point for fiscal 2027. The next test is execution. Higher-capacity drives must ramp on schedule if WDC is to translate rising cloud and artificial intelligence storage demand into sustained revenue, margin and earnings growth.

WDC's Q4 Beat Shows Demand and Pricing StrengthFourth-quarter revenues reached $3.75 billion, up 44% year over year and above the Zacks Consensus Estimate of $3.70 billion. Non-GAAP earnings of $3.56 per share topped the consensus mark of $3.35 and increased 109%.

Non-GAAP gross margin expanded 1,310 basis points year over year to 54.4%. A richer mix of higher-capacity drives, favorable pricing and manufacturing discipline helped lift profitability, while blended price per terabyte increased by the high teens.

Image Source: Zacks Investment Research

Western Digital Guides to Another Growth StepFor the first quarter of fiscal 2027, management expects revenues of $4.1 billion, plus or minus $100 million. At the midpoint, that represents about 45% year-over-year growth.

Western Digital also projects non-GAAP gross margin of 55%-56% and earnings of $4 per share, plus or minus 15 cents. The outlook implies another step up from fourth-quarter profitability if demand and pricing remain favorable.

WDC's 40TB ePMR Ramp Moves Into VolumeWestern Digital began shipping next-generation energy-assisted perpendicular magnetic recording drives with capacities up to 40 terabytes in the fiscal fourth quarter. The company has entered volume production with two customers.

Management expects the platform to account for about half of nearline bits by the third quarter of fiscal 2027. Higher capacity per drive should allow WDC to deliver more exabytes without a corresponding increase in unit volumes.

Western Digital's HAMR Timeline Becomes the Next TestThe roadmap calls for 44-terabyte heat-assisted magnetic recording products in the first half of calendar 2027 and 50-terabyte products in the second half. Customer qualification and manufacturing execution therefore remain central to the fiscal 2027 setup.

UltraSMR adoption is advancing as well. Western Digital expects the technology to represent about 60% of nearline exabyte shipments as fiscal 2027 ends, making the sequencing of multiple product transitions important to capacity and cost gains.

WDC's AI Storage Demand Broadens the OpportunityManagement sees inference, agentic artificial intelligence and physical artificial intelligence as persistent storage drivers because these workloads continuously create and retain data. High-bandwidth drives are also sampling with five customers, potentially extending HDD economics into higher-throughput workloads.

The theme is broader than WDC. Seagate Technology Holdings plc (STX - Free Report) reported fiscal fourth-quarter 2026 revenues of $3.6 billion as a mass-capacity storage provider, while Sandisk Corporation (SNDK - Free Report) said fiscal 2026 Datacenter revenues increased 437%, illustrating demand across different storage technologies.

Growth Scores Reinforce WDC's Execution SetupWDC's fiscal 2027 opportunity is substantial, but the product roadmap raises the execution bar. The company must sustain pricing, qualify new platforms and convert higher-capacity drives into the exabyte growth and margin expansion embedded in its outlook.

The stock currently carries a Zacks Rank #2 (Buy), along with a Growth Score of A and  Momentum Score of A. Those scores favor growth and momentum characteristics, while the Value Score of F and VGM Score of C point to a less attractive value profile and a mixed combined reading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

B. Metzler seel. Sohn & Co. AG acquired a new stake in shares of Western Digital Corporation (NASDAQ:WDC – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 69,916 shares of the data storage provider’s stock, valued at approximately $44,657,000.

Several other large investors have also recently modified their holdings of WDC. Norges Bank bought a new stake in shares of Western Digital in the 4th quarter valued at about $788,729,000. Soroban Capital Partners LP lifted its position in Western Digital by 1,926.3% in the second quarter. Soroban Capital Partners LP now owns 3,061,134 shares of the data storage provider’s stock valued at $195,882,000 after purchasing an additional 2,910,062 shares during the last quarter. Polar Capital Holdings Plc purchased a new stake in shares of Western Digital during the third quarter valued at approximately $221,800,000. Deutsche Bank AG purchased a new stake in shares of Western Digital during the second quarter valued at approximately $885,565,000. Finally, Value Aligned Research Advisors LLC bought a new position in shares of Western Digital in the first quarter worth approximately $350,403,000. Hedge funds and other institutional investors own 92.51% of the company’s stock.

Western Digital Trading Up 1.5% NASDAQ:WDC opened at $469.05 on Friday. Western Digital Corporation has a 12 month low of $74.42 and a 12 month high of $799.87. The company has a 50-day moving average price of $554.31 and a 200-day moving average price of $433.12. The stock has a market cap of $161.67 billion, a price-to-earnings ratio of 19.37 and a beta of 2.14.

Western Digital (NASDAQ:WDC – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, topping the consensus estimate of $3.31 by $0.25. Western Digital had a net margin of 72.95% and a return on equity of 48.15%. The business had revenue of $3.75 billion during the quarter, compared to analyst estimates of $3.70 billion. During the same period last year, the business posted $1.66 earnings per share. Western Digital’s quarterly revenue was up 43.8% compared to the same quarter last year. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. Equities analysts forecast that Western Digital Corporation will post 19.65 EPS for the current fiscal year. Western Digital Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Tuesday, September 8th will be issued a $0.15 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Western Digital’s dividend payout ratio is 2.48%.

Analyst Upgrades and Downgrades Several research analysts recently commented on WDC shares. Robert W. Baird set a $630.00 target price on shares of Western Digital in a research note on Thursday, August 6th. Wall Street Zen cut shares of Western Digital from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 16th. Rosenblatt Securities cut their price target on shares of Western Digital from $900.00 to $800.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Weiss Ratings cut shares of Western Digital from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Finally, Barclays increased their target price on shares of Western Digital from $450.00 to $620.00 and gave the stock an “overweight” rating in a report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Western Digital presently has an average rating of “Moderate Buy” and an average target price of $534.56.

View Our Latest Report on WDC

Insider Transactions at Western Digital In other Western Digital news, insider Cynthia L. Tregillis sold 808 shares of the firm’s stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $529.63, for a total transaction of $427,941.04. Following the completion of the transaction, the insider owned 114,539 shares of the company’s stock, valued at approximately $60,663,290.57. This trade represents a 0.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vidyadhara K. Gubbi sold 2,475 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $556.24, for a total value of $1,376,694.00. Following the completion of the sale, the insider directly owned 85,154 shares in the company, valued at approximately $47,366,060.96. This represents a 2.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 24,679 shares of company stock worth $11,451,605. Corporate insiders own 0.18% of the company’s stock.

Western Digital Profile (Free Report)

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

Further Reading Five stocks we like better than Western Digital 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding WDC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Western Digital Corporation (NASDAQ:WDC – Free Report).

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Key Takeaways Western Digital's Q4 revenues rose 44% as strong storage demand fueled top-line growth. WDC expects Q1 FY27 revenues of $4.1B and gross margins of 55%-56%, signaling continued momentum.Strong cash flow and margin expansion could support WDC's earnings growth and further share-price upside. With the rise of artificial intelligence (AI), NVIDIA Corporation (NVDA - Free Report) has emerged as a prime beneficiary, with its shares soaring and helping the company surpass a $5-trillion market capitalization. The rally has been fueled by incessant demand for NVIDIA’s advanced chips and CUDA software platform.  

Given NVIDIA’s remarkable AI-driven growth, investors would be tempted to buy the stock. However, NVIDIA’s gains have been subdued this year, up only 16.7%. Even though the broader tech sector has remained resilient, investors are increasingly concerned about a potential slowdown in AI spending and its impact on NVIDIA’s earnings, which have so far remained phenomenal.  

Tighter restrictions on chip exports to China and stiff competition could also weigh on NVIDIA’s growth trajectory. Against this not-so-encouraging backdrop, investors should consider other beneficiaries in the AI ecosystem, such as Western Digital Corporation (WDC - Free Report) , whose shares have surged 154.5% this year and have further room to scale upward.  

Western Digital continues to benefit from AI-driven demand for high-capacity data storage. Let’s explore in detail why Western Digital could be a smart buy now –  

WDC’s AI Tailwinds and Earnings Growth Create Further Upside Western Digital recently reported revenues of $3.75 billion in the fiscal fourth quarter of 2026, up 44% from a year ago, according to the company’s press release. The company’s top-line growth isn’t due to cost-cutting or acquisitions; it is primarily driven by strong demand for storage products.  

Further, the company expects revenues of $4.1 billion for the first quarter of fiscal 2027, plus or minus $100 million. At the midpoint, this would represent 42-49% year-over-year growth, indicating that revenue growth is expected to carry into fiscal 2027, and the robust performance reported last quarter wasn’t just a temporary surge. 

As storage continues to become a strong component of the AI infrastructure buildout, Western Digital is poised to gain further. The company is therefore forecasting a healthy non-GAAP gross margin of 55-56% for the fiscal first quarter of 2027, up from 54.4% reported in the fiscal fourth quarter of 2026. 

Further, margin expansion, along with strong revenue growth, could enhance Western Digital’s operating leverage, translating into faster growth in operating income and earnings. The company has generated a strong free cash flow of $1.28 billion in the fiscal fourth quarter of 2026, providing the company greater financial flexibility to reinvest in research and development, strengthen the balance sheet, and fund growth initiatives. 

Hence, strong revenue growth, margin expansion and robust cash flow are expected to continue to boost Western Digital’s earnings growth and support further upside in its share price. Brokers also see greater upside potential in Western Digital. 

The average short-term price target for WDC stock is $664.77, representing a 53.1% upside from its last closing price of $434.30. The highest price target stands at $1,050, suggesting a potential upside of 141.8%.

 

Image Source: Zacks Investment Research

Therefore, it’s prudent for investors to place bets on Western Digital at the current levels to capitalize on its upside potential. Consequently, the company’s expected earnings growth rate for the current year is 84.4%. The Zacks Consensus Estimate of $18.85 for WDC’s earnings per share is up 165.1% year over year.

 

Image Source: Zacks Investment Research

Western Digital currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Posted by Defense World Staff on Aug 7th, 2026

CoreCap Advisors LLC boosted its holdings in Western Digital Corporation (NASDAQ:WDC – Free Report) by 89.7% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 3,862 shares of the data storage provider’s stock after purchasing an additional 1,826 shares during the quarter. CoreCap Advisors LLC’s holdings in Western Digital were worth $2,467,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Rakuten Securities Inc. raised its holdings in shares of Western Digital by 4,070.0% in the 2nd quarter. Rakuten Securities Inc. now owns 417 shares of the data storage provider’s stock worth $27,000 after acquiring an additional 407 shares during the last quarter. Avion Wealth raised its stake in shares of Western Digital by 163.8% in the fourth quarter. Avion Wealth now owns 182 shares of the data storage provider’s stock worth $31,000 after purchasing an additional 113 shares during the last quarter. Valley Wealth Managers Inc. purchased a new stake in shares of Western Digital in the first quarter worth approximately $32,000. Swiss RE Ltd. bought a new position in shares of Western Digital in the fourth quarter valued at approximately $32,000. Finally, BOKF NA lifted its holdings in shares of Western Digital by 6,700.0% in the third quarter. BOKF NA now owns 272 shares of the data storage provider’s stock valued at $33,000 after purchasing an additional 268 shares in the last quarter. Institutional investors own 92.51% of the company’s stock.

Western Digital News Summary Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Western Digital reported adjusted earnings of $3.56 per share, above the $3.31 consensus estimate, while revenue increased 43.8% year over year to $3.75 billion, also exceeding forecasts. Western Digital Q4 Earnings Beat as Revenue Jumps 44% on Cloud Demand Positive Sentiment: Management cited strong cloud and AI-related storage demand, pricing gains and adoption of higher-capacity products. The company said some AI customers are negotiating storage capacity commitments through 2031, providing long-term demand visibility. Western Digital Says AI Customers Are Already Negotiating Storage Deals Through 2031 Positive Sentiment: Fiscal first-quarter 2027 revenue guidance of $4.0 billion to $4.2 billion and adjusted EPS guidance of $3.85 to $4.15 were above consensus estimates. Several analysts maintained bullish views, including Baird, which raised its price target to $630. Western Digital Earns Buy Rating as Analyst Lifts Price Target to $630 Analyst Upgrades and Downgrades Several equities research analysts recently issued reports on the company. Susquehanna upped their price target on Western Digital from $360.00 to $500.00 and gave the stock a “neutral” rating in a report on Wednesday, July 8th. Citigroup boosted their price target on shares of Western Digital from $685.00 to $800.00 and gave the stock a “buy” rating in a report on Monday, July 13th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $400.00 price objective on shares of Western Digital in a research note on Friday, May 1st. Weiss Ratings raised shares of Western Digital from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, July 13th. Finally, Zacks Research upgraded Western Digital from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Western Digital currently has a consensus rating of “Moderate Buy” and a consensus price target of $536.96.

Read Our Latest Stock Report on WDC

Western Digital Trading Down 13.0% Shares of WDC stock opened at $451.52 on Friday. The stock has a market capitalization of $155.63 billion, a P/E ratio of 18.65 and a beta of 2.14. The firm’s 50 day moving average is $567.55 and its 200 day moving average is $417.23. Western Digital Corporation has a 12 month low of $73.14 and a 12 month high of $799.87.

Western Digital (NASDAQ:WDC – Get Free Report) last posted its earnings results on Tuesday, August 4th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.31 by $0.25. Western Digital had a return on equity of 50.22% and a net margin of 72.95%.The firm had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.70 billion. During the same quarter in the prior year, the business posted $1.66 earnings per share. The business’s quarterly revenue was up 43.8% on a year-over-year basis. On average, equities analysts predict that Western Digital Corporation will post 17.77 EPS for the current year.

Western Digital Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Tuesday, September 8th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Western Digital’s dividend payout ratio is 3.58%.

Insiders Place Their Bets In other Western Digital news, insider Cynthia L. Tregillis sold 808 shares of the firm’s stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $529.63, for a total value of $427,941.04. Following the completion of the transaction, the insider directly owned 114,539 shares of the company’s stock, valued at $60,663,290.57. This trade represents a 0.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vidyadhara K. Gubbi sold 2,475 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $556.24, for a total value of $1,376,694.00. Following the completion of the sale, the insider owned 85,154 shares in the company, valued at $47,366,060.96. This trade represents a 2.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 5,093 shares of company stock worth $2,751,337 in the last three months. 0.18% of the stock is currently owned by corporate insiders.

About Western Digital (Free Report)

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

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Western Digital Corporation (WDC) Q4 2026 Earnings Call August 5, 2026 4:30 PM EDT

Company Participants

Ambrish Srivastava - Vice President of Investor Relations
Tiang Yew Tan - CEO & Director
Kris Sennesael - Executive VP & CFO

Conference Call Participants

Christopher Muse - Cantor Fitzgerald & Co., Research Division
Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Aaron Rakers - Wells Fargo Securities, LLC, Research Division
Wamsi Mohan - BofA Securities, Research Division
Sreekrishnan Sankarnarayanan - TD Cowen, Research Division
Michael Cadiz - Citigroup Inc., Research Division
Erik Woodring - Morgan Stanley, Research Division
Benjamin Reitzes - Melius Research LLC
Karl Ackerman - BNP Paribas, Research Division
Ananda Baruah - Loop Capital Markets LLC, Research Division

Presentation

Operator

Good afternoon, and welcome to the Western Digital's Fourth Quarter Fiscal 2026 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Ambrish Srivastava, Vice President of Investor Relations. Please go ahead.

Ambrish Srivastava
Vice President of Investor Relations

Thank you, and good afternoon, everyone. Joining me today are Irving Tan, WD's Chief Executive Officer; and Kris Sennesael, WD's Chief Financial Officer. Before we begin, please note that today's discussion will contain forward-looking statements based on management's current assumptions and expectations, which are subject to various risks and uncertainties.

These forward-looking statements include expectations for our product portfolio, our business plans and performance, ongoing market trends and our future financial results. We assume no obligation to update these statements. Please refer to our most recent annual report on Form 10-K and our other filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially from expectations.

In our prepared remarks, our comments will be related to non-GAAP results on a continuing operations basis, unless stated otherwise. Reconciliations between the non-GAAP and

Western Digital Corporation (NASDAQ:WDC) will release its fourth quarter earnings report after the closing bell on Wednesday, Aug. 5.

Analysts expect the San Jose, California-based company to report quarterly earnings of $3.30 per share, up from $1.66 per share in the year-ago period. The consensus estimate for Western Digital’s quarterly revenue is $3.7 billion. It reported $2.6 billion last year, according to Benzinga Pro.

On April 30, Western Digital posted better-than-expected third-quarter earnings.

Western Digital shares rose 4.1% to close at $548.56 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying WDC stock? Here’s what analysts think:

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Western Digital Today

WDC

Western Digital

$456.00 -41.92 (-8.42%)

As of 02:40 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$69.30▼

$799.87Dividend Yield0.13%

P/E Ratio27.27

Price Target$520.32

Few stocks capture the euphoria and the anxiety of the artificial intelligence (AI) storage boom quite like Western Digital Corporation NASDAQ: WDC. Through the middle of last month, the stock had been one of the market's standout performers of the year, riding relentless demand for data storage to enormous gains. Yet the past few weeks have been a sharp reminder that nothing goes up in a straight line.

Shares have fallen around 40% from June’s high as the wider AI trade has wobbled, with investors growing nervous that elevated valuations across the storage and memory space may have run ahead of themselves. However, even after that drop, Western Digital shares are still up significantly for the year to date, which rather neatly frames the question facing investors today.

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With the company due to report earnings on Aug. 5, is this pullback a chance to buy one of the AI theme's biggest winners at a discount, or a warning that the storage rally is finally running out of road?

Western Digital’s Bull Case Still Starts With AI Storage DemandLet’s start with why the stock ran so hard in the first place. Western Digital sits at the heart of one of the most powerful supply-and-demand imbalances in tech right now. The explosion of AI infrastructure has sent demand for high-capacity storage soaring, while supply has remained tight, handing manufacturers like Western Digital significant pricing power.

That dynamic has been showing up throughout the business. Revenue has been growing rapidly year over year, while the company has generated enough cash to hike its dividend and buy back a meaningful chunk of stock.

Wall Street Has Not Given Up on the AI Storage TradeThe analyst community has clearly taken note, with Morgan Stanley recently raising its price target to $650, arguing that conservative margin guidance leaves ample room for another beat. Alongside Citigroup’s refreshed price target of $800 from earlier this month, and the nearly 40% that implies, it’s easy to see why Western Digital has a consensus rating of Moderate Buy.

Crucially, the tailwinds driving these bullish updates all look durable. Data center capital spending is projected to keep climbing for years to come, driven by the same AI buildout that has powered the storage rally so far. The thinking is that if this demand holds, Western Digital's pricing power should hold with it.

Earnings Will Test the Margin StoryWestern Digital Stock Forecast Today12-Month Stock Price Forecast:
$520.32
18.27% Upside

Moderate Buy
Based on 24 Analyst Ratings

Current Price$439.93High Forecast$1,050.00Average Forecast$520.32Low Forecast$163.00Western Digital Stock Forecast Details

That makes the upcoming earnings report an important test. The single most-watched number will be gross margin, which has become the clearest signal of whether the company's pricing power is still expanding.

Management has guided to a healthy gross margin, and any sign it is coming in ahead of that, or being guided higher still, would go a long way toward confirming the bull case. Continued expansion would tell investors that the tight-supply story remains intact and that the recent sell-off was little more than sentiment-driven noise. On the other hand, a softer read would give the bears exactly the ammunition they have been looking for.

Beyond margins, investors will also be listening closely to what management says about pricing and supply heading into the back half of the year. In a story built almost entirely on the supply-demand imbalance, any hint that the imbalance is starting to ease would matter far more than the headline revenue and earnings figures.

Valuation Still Leaves Little Room for ErrorFor all the strength in the underlying dynamics, the bears have some legitimate points, and none is stronger than Western Digital’s valuation. Even after the recent pullback, the stock still trades at a meaningful premium to both its own historical averages and its sector peers.

When a stock goes into an earnings report still priced so richly, the room for error is minuscule, and any disappointment, even if the results themselves are still solid, can be punished quickly.

Investors Have to Decide How Much Risk to Take Before EarningsThis is where it’s hard to ignore the risk/reward profile after such a sell-off, especially as the analyst community has remained so bullish, with targets rising even as the stock has fallen in recent weeks.

If the demand proves as durable as the bulls believe, a 40% pre-earnings pullback could end up looking like a golden entry opportunity in hindsight. For investors who believe the AI buildout is still in its early innings, buying quality on weakness has tended to pay off throughout this cycle, and it could be a smart move to consider again now.

Should You Invest $1,000 in Western Digital Right Now?Before you consider Western Digital, you'll want to hear this.

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Posted by Defense World Staff on Jul 21st, 2026

Andra AP fonden reduced its stake in Western Digital Corporation (NASDAQ:WDC – Free Report) by 68.6% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 81,737 shares of the data storage provider’s stock after selling 178,663 shares during the quarter. Andra AP fonden’s holdings in Western Digital were worth $22,109,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Wilkerson Advisory Group LLC grew its stake in shares of Western Digital by 114.7% in the first quarter. Wilkerson Advisory Group LLC now owns 249 shares of the data storage provider’s stock valued at $67,000 after buying an additional 133 shares in the last quarter. MWA Asset Management acquired a new position in Western Digital during the 1st quarter worth about $101,000. Convergence Investment Partners LLC purchased a new position in Western Digital during the 1st quarter valued at about $5,457,000. Legacy Wealth Managment LLC ID grew its position in Western Digital by 105,371.4% in the 1st quarter. Legacy Wealth Managment LLC ID now owns 7,383 shares of the data storage provider’s stock valued at $1,997,000 after acquiring an additional 7,376 shares in the last quarter. Finally, Florida Financial Advisors LLC grew its position in Western Digital by 26.4% in the 1st quarter. Florida Financial Advisors LLC now owns 12,455 shares of the data storage provider’s stock valued at $3,369,000 after acquiring an additional 2,602 shares in the last quarter. Institutional investors and hedge funds own 92.51% of the company’s stock.

More Western Digital News Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Western Digital is benefiting from a rebound in memory stocks as investors step back in after last week’s selloff, improving sentiment across the semiconductor group. Micron Jumps 5%, SanDisk Rises 6%, Western Digital Climbs 4% as Memory Stocks Rebound With Chips Positive Sentiment: Morgan Stanley’s view that the memory-stock selloff created a strong entry point is encouraging dip-buying in Western Digital and other chip names. The Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In. Neutral Sentiment: Western Digital Malaysia was recognized for advancing sustainable AI infrastructure, which supports the company’s AI narrative but is unlikely to be the main stock-moving catalyst today. WD Malaysia Recognized for Advancing Sustainable AI Infrastructure Western Digital Trading Up 2.1% Western Digital stock opened at $487.42 on Tuesday. The stock has a market cap of $168.00 billion, a P/E ratio of 29.10 and a beta of 2.11. The company has a fifty day simple moving average of $560.32 and a 200-day simple moving average of $388.23. Western Digital Corporation has a 12-month low of $66.04 and a 12-month high of $799.87.

Western Digital (NASDAQ:WDC – Get Free Report) last posted its earnings results on Thursday, April 30th. The data storage provider reported $2.72 EPS for the quarter, beating the consensus estimate of $2.39 by $0.33. The firm had revenue of $3.34 billion for the quarter, compared to analyst estimates of $3.25 billion. Western Digital had a return on equity of 42.95% and a net margin of 55.29%.Western Digital’s revenue for the quarter was up 45.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.36 earnings per share. Western Digital has set its Q4 2026 guidance at 3.100-3.400 EPS. As a group, sell-side analysts forecast that Western Digital Corporation will post 9.61 earnings per share for the current fiscal year.

Western Digital Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Friday, June 5th were given a dividend of $0.15 per share. This is a boost from Western Digital’s previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Western Digital’s dividend payout ratio is 3.58%.

Insiders Place Their Bets In other Western Digital news, CEO Irving Tan sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $411.84, for a total transaction of $8,236,800.00. Following the sale, the chief executive officer owned 598,150 shares of the company’s stock, valued at approximately $246,342,096. This trade represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bruce E. Kiddoo sold 750 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $528.52, for a total transaction of $396,390.00. Following the sale, the director owned 3,903 shares of the company’s stock, valued at $2,062,813.56. This represents a 16.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 28,959 shares of company stock worth $12,631,666 in the last three months. 0.18% of the stock is owned by company insiders.

Analyst Ratings Changes WDC has been the topic of several research reports. Wells Fargo & Company increased their price target on shares of Western Digital from $575.00 to $730.00 and gave the stock an “overweight” rating in a research report on Friday, July 10th. UBS Group reissued a “neutral” rating and issued a $560.00 price target on shares of Western Digital in a research report on Monday, July 13th. Weiss Ratings raised Western Digital from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, July 13th. Morgan Stanley increased their price objective on Western Digital from $488.00 to $650.00 and gave the company an “overweight” rating in a research note on Monday, June 15th. Finally, Susquehanna lifted their target price on Western Digital from $360.00 to $500.00 and gave the company a “neutral” rating in a report on Wednesday, July 8th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Western Digital presently has an average rating of “Moderate Buy” and an average target price of $520.32.

View Our Latest Stock Report on WDC

Western Digital Profile (Free Report)

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

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Key Takeaways Western Digital expects AI-driven data growth to boost long-term HDD storage demand above 25% CAGR.WDC sharpened its HDD focus after separating its flash business into Sandisk to serve hyperscalers.WDC is advancing new HDD technologies to improve throughput and support large-scale AI deployments. The surge in data creation is creating a growing opportunity for storage companies, particularly Western Digital Corporation (WDC - Free Report) . The rapid shift from AI training to large-scale inference is driving an explosion in data creation, significantly increasing demand for persistent, scalable, and cost-effective storage—most of which resides on HDDs. Western Digital expects the rise of agentic AI, which autonomously executes workflows, to further accelerate data generation and extend data retention, boosting storage demand across cloud and enterprise environments.

At the same time, synthetic data and physical AI applications, such as robotics and autonomous systems, are creating massive volumes of video, sensor and training data, forming a compounding cycle of data growth. As a result, WDC believes the AI-driven data economy will drive long-term data storage demand at more than 25% CAGR, positioning its high-capacity HDD roadmap to benefit from this trend. WDC’s quarterly trends have shown massive revenue growth, improving gross margins, better pricing discipline and strong enterprise demand. It has also sharpened its focus following the separation of its flash business intoSandisk (SNDK - Free Report) , allowing management to concentrate on advancing HDD technologies and serving hyperscale customers more effectively.

Moreover, AI pipelines increasingly demand higher throughput, an area where flash has traditionally dominated. WD has introduced two industry-first technologies that fundamentally change HDD performance dynamics – High Bandwidth Drive Technology and Dual Pivot Technology. High Bandwidth Drive technology is already in customers’ hands for validation, while HDDs featuring Dual Pivot technology remain in the lab and are slated for introduction in 2028. On the other hand, power-optimized drives are expected to be in customer qualification in 2027, effectively creating a new economic storage tier between warm and cold data, critical for sustainable AI deployments at scale. 

However, Western Digital competes with well-funded rivals like Seagate Technology Holdings plc (STX - Free Report) in HDDs and several major NAND manufacturers in flash technologies.

AI Presents Huge Potential: Can WDC Outpace Peers?The rise of AI-driven inference workloads is increasing demand for both cloud and edge storage, with growing interest from sovereign and neo-cloud data centers in Seagate’s enterprise nearline drives and storage systems. Seagate is capitalizing on this trend through its focus on areal-density innovation rather than unit-volume growth. Its HAMR-based Mozaic platform exemplifies this strategy, with the second-generation Mozaic 4+ delivering up to 44TB per drive—more than 30% higher capacity than the first generation. Enhanced by Seagate’s proprietary laser and integrated photonics technology, the platform improves storage density, cost efficiency and scalability, supporting the company’s targeted mid-20% annual data-center exabyte growth.

Sandisk is benefiting from AI-led demand that is lifting enterprise SSD adoption and supporting pricing across NAND end markets. NAND is becoming a critical part of AI inference architectures such as KV cache and RAG, which expands low-latency flash needs beyond the model itself. In February 2026, Sandisk and SK hynix launched a joint initiative to standardize High Bandwidth Flash, a next-generation memory solution designed for the growing demands of AI inference. The effort reflects a broader industry shift from AI model training to inference, where efficient memory systems are critical to handle increasing data workloads and enable future AI infrastructure growth.

WDC Price Performance, Valuation and EstimatesIn the past year, shares of WDC have surged 586.5% compared with the Zacks Computer-Storage Devices industry’s growth of 381.6%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 24.35 forward earnings compared with 10.63 for the industry.

Image Source: Zacks Investment Research

WDC’s estimate revisions are on an upward trajectory currently. The Zacks Consensus Estimate for WDC’s earnings for fiscal 2026 has been revised north by 0.4% to $10.06 over the past 60 days, while the same for fiscal 2027 has gone up 8.4% to $18.64.

Image Source: Zacks Investment Research

Currently, Western Digital has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Continued supply shortages, dramatic price increases, surging AI demand, and persistent competition across international markets have all contributed to volatility in the computer memory industry. With the impending IPO of China's ChangXin Memory Technologies, the landscape is likely to only become more competitive and uncertain in the near-term. Still, many tech firms are scrambling to secure supply despite an intensifying marketplace and new competition.

The result is an environment that could be beneficial to many participants in the memory storage space, although for different reasons. Makers of hard disk drives (HDDs) face different challenges and opportunities than companies behind NAND flash tools or enterprise solid-state drives (SSDs), for instance. This means that companies including Seagate Technology NASDAQ: STX, Western Digital Corp. NASDAQ: WDC, and Sandisk Corp. NASDAQ: SNDK can all find a niche and, potentially, room for further share price appreciation.

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Seagate's HDD Business Soars, But What Upside Remains?Overall MarketRank™94th Percentile

Analyst RatingModerate Buy

Upside/Downside8.5% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment0.93 Insider TradingSelling Shares

Proj. Earnings Growth91.80%

See Full Analysis

Seagate is a major manufacturer of HDDs, which are increasingly popular among hyperscalers because they remain cheaper alternatives to some other types of memory products. The company is also an emerging leader in heat-assisted magnetic recording (HAMR), an advanced technology that may be poised for a demand surge in the coming years.

This positioning has benefited Seagate's financial performance considerably: in the latest quarter, the company grew revenue by 44% year over year (YOY) to $3.1 billion while achieving a non-GAAP gross margin of 47%. Both top- and bottom-line performance came in well ahead of analyst expectations, as the firm beat predictions for earnings per share (EPS) by a solid 59 cents. HAMR momentum in particular helped to drive some of these gains.

Strong guidance for the foreseeable future and a long-term revenue growth target of at least 20% per year suggest that Seagate may be able to continue to ride this momentum, which has already contributed to shares coming close to tripling year to date (YTD). Even still, analysts expect additional upside, with a consensus price target close to $899, and 22 of 27 ratings for STX are Buys.

What investors might watch out for with this stock are its potential for future growth, given its dramatic rally in recent months, as well as its heavy reliance on HDDs and related technologies.

Western Digital's Cleaner Post-Spin-Off Business Finds Its LegsOverall MarketRank™88th Percentile

Analyst RatingModerate Buy

Upside/Downside1.3% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment0.76 Insider TradingSelling Shares

Proj. Earnings Growth87.71%

See Full Analysis

Western Digital has had almost a year and a half since officially spinning off Sandisk as a separate company focused on flash memory and SSD. The result is a company that is streamlined to focus on enterprise HDDs, with strong pricing and improving profitability metrics. While the firm is likely behind Seagate on its capacity to commercialize HAMR products and has a smaller share of the enterprise HDD space, its long-term agreements give it strong support for years to come.

In the most recent quarter, Western Digital boosted revenue by 45% YOY to $3.3 billion while almost doubling EPS over the same period. Its gross margin of 50.5% is also notable, as the firm was able to cut more than $3 billion in debt and generated close to $1 billion in free cash flow. At the same time, Western Digital has been aggressive about shareholder value returns, repurchasing $752 million in stock last quarter and boosting its dividend in the process.

Like STX, WDC shares have almost tripled YTD, and analysts suspect that this momentum may have stalled somewhat. Still, 20 out of 24 call WDC a Buy heading into the second half of the year.

Sandisk Stock Remains in Focus After Its Spin-OffOverall MarketRank™89th Percentile

Analyst RatingModerate Buy

Upside/Downside11.7% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment0.63 Insider TradingSelling Shares

Proj. Earnings Growth186.42%

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Investors considering Western Digital will also want to look at how Sandisk has fared after the spin-off. SNDK shares are up some 458% YTD, a massive rally to be sure, but have fallen by more than 27% in the last month. This volatility makes SNDK stand out somewhat in the memory space but could also present opportunities for investors willing to accept the risk.

On the business side, Sandisk has performed exceptionally well: the latest quarter brought several multi-year new business agreements worth tens of billions of dollars, 251% YOY revenue improvement to nearly $6 billion, adjusted free cash flow of almost $3 billion, and gross margin of 78.4%. Management sees a strong quarter to come as well, including revenue between $7.75 billion and $8.25 billion and gross margin as high as 81%. The company is also engaging in a massive share buyback program.

It goes to show just how well Sandisk has done that even after the massive rally, Wall Street still sees 17% in possible upside. In terms of ratings, 21 Buys and five Holds suggest a very bullish perspective among analysts, making SNDK a standout even within a strong industry.

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Key Takeaways WDC is benefiting from AI storage demand, pricing strength and enterprise infrastructure spending.Western Digital cut debt, built a net cash position and expanded share repurchase authorization.WDC's fiscal 2026 and 2027 earnings estimates have moved higher amid improving fundamentals. Western Digital Corporation (WDC - Free Report) has been a standout performer in the storage industry over the past year. Its shares have skyrocketed 723.1% over the past year, outpacing the 458.1% growth of the Zacks Computer-Storage Devices industry. The stock has also outperformed the Zacks Computer & Technology sector’s and the S&P 500’s growth of 33.7% and 23.6%, respectively. After enduring a prolonged downturn caused by weak PC demand and excess memory inventory, the company has benefited from a recovery in storage pricing, growing enterprise demand and the accelerating adoption of AI.

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Western Digital competes against several major players in both HDD and flash storage markets, such as Seagate Technology Holdings plc (STX - Free Report) , NetApp, Inc. (NTAP - Free Report) and Teradata (TDC - Free Report) . STX, TDC and NTAP have gained 482.8%, 60.4% and 55.4%, respectively, in the same time frame.

WDC boasts a 52-week high of $799.87. With WDC outperforming many peers over the last 12 months, investors wonder whether there is still upside potential or whether most of the gains have already been priced in.

Here's a closer look.

Industry Tailwinds Continue to Favor WDC StockSeveral broader trends continue supporting long-term storage demand, such as the AI boom, healthy cloud spending, rising enterprise digital transformation and improving operational efficiency. Driven by rising demand for AI-related storage, WD is strengthening its capacity leadership through continuous innovation. The company is advancing 44TB HAMR and 40TB ePMR high-capacity drives in qualification, with volume production expected in the second half of 2026 and a roadmap extending beyond 100TB.

It is also expanding adoption of its UltraSMR technology, now used by three major customers and supporting nearly all exabyte demand. In addition, WD is introducing high-bandwidth drives and dual-pivot technology to optimize AI workloads, while long-term customer agreements extending through 2028 and 2029 provide greater revenue visibility. AI workloads, agentic AI, synthetic data and physical AI are driving strong demand for HDD storage, with long-term exabyte growth projected to exceed 25% CAGR. As AI-generated data continues to expand, HDDs remain the preferred solution for long-term data retention in hyperscale data centers, complementing flash storage, which is optimized for high-speed performance.

Western Digital is also benefiting from higher pricing, a favorable product mix and cost efficiencies. It expects pricing momentum to continue into late 2026, while improvements in areal density, UltraSMR adoption and supply chain efficiencies are lowering costs and supporting margin expansion without requiring additional manufacturing capacity. The UltraSMR JBOD platform aims to broaden market reach, especially into Tier 2 CSPs and some hyperscalers in Asia. By the end of calendar 2027, most key customers will be on UltraSMR, either fully adopted or in qualification. The forecast indicates that close to 60% of exabytes shipped will be on UltraSMR by the end of fiscal 2027. Expansion into Tier 2 CSPs and hyperscalers is a key strategy.

The company is also considering investments in head and media capacity to support multiyear customer commitments, focusing on technological improvements rather than unit capacity. No new unit capacity investments are planned. The focus is on increasing capacity per drive through technology, such as higher aerial density and more platters. There is potential to increase capacity from 14 disks over time if it proves to be economically viable.

Spin-Off Creates New Opportunities for WDCWestern Digital has been restructuring its business by separating its flash memory operations into Sandisk (SNDK - Free Report) from its HDD business. Investors often reward companies that simplify their business models, allowing each segment to pursue strategies tailored to its specific market. During the fiscal third quarter, WDC strengthened its balance sheet by selling 5.8 million SanDisk shares and using the proceeds to reduce debt by $3.1 billion, leaving only $1.6 billion in convertible debt.

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The company also ended the quarter with a net cash position of $450 million and expanded its capital return program by authorizing an additional $4 billion in share repurchases. Strong free cash flow continues to support WesternDigital's shareholder return strategy. The company increased its quarterly dividend by 20%, and has returned $2.2 billion to shareholders through dividends and share repurchases since the fourth quarter of 2025. Supported by a net cash position, management remains focused on returning excess free cash flow through ongoing buybacks and dividends.

Despite the positive outlook, Western Digital remains far from risk-free. The storage industry remains highly cyclical, with supply-demand imbalances capable of quickly pressuring pricing, margins and profitability. The company also faces intense competition, while any slowdown in AI investment or broader macroeconomic weakness could reduce demand for storage infrastructure.

Upbeat Estimate Revision Trend for WDCWDC’s estimate revisions are on an upward trajectory currently. The Zacks Consensus Estimate for WDC’s earnings for fiscal 2026 has been revised north by 0.4% to $10.06 over the past 60 days, while the same for fiscal 2027 has gone up 8.4% to $18.64.

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Valuation ConsiderationsSeveral factors could support continued appreciation, including rising enterprise demand, a better pricing environment, improving margins, the expansion of AI infrastructure and benefits from corporate restructuring. Going by the price/earnings ratio, the company’s shares currently trade at 28.66 forward earnings compared with 12.59 for the industry.

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In comparison, the forward 12-month price/earnings multiple for STX, TDC and NTAP are 29.51X, 19.71X and 22.67X, respectively.

Should You Consider Buying WDC Stock Now?Western Digital’s improving fundamentals, recovering storage markets, better profitability and growing exposure to AI-driven infrastructure spending drove its strong performance. Its long-term prospects remain encouraging as cloud computing, AI and exploding global data creation continue boosting storage demand. The company's strategic restructuring could unlock further shareholder value over time. However, short-term volatility, pricing swings and macroeconomic uncertainty could create periods of weakness even if the long-term trajectory remains intact.

For long-term investors who can tolerate industry cycles, WDC still appears to offer an attractive way to participate in the growing demand for enterprise storage and AI infrastructure. While last year's outsized gains may be hard to repeat, continued execution and favorable industry trends could still support further upside.

Flaunting a Zacks Rank #1 (Strong Buy), WDC is an appealing portfolio pick at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

CNBC’s Oliver Renick highlighted a split in investor sentiment on his Options Action segment this morning. Melius Research initiated coverage of Seagate and Western Digital as Buy-rated stocks, with price targets about 55% above current levels. Renick reported that options flow leaned bullish in each stock, with roughly twice as many calls bought as puts, but that overall volume was “surprisingly muted” compared with the heat in adjacent memory names.

Seagate: Margins and Cash Flow Reset Higher Seagate Technology (NASDAQ:STX | STX Price Prediction) closed its March quarter with revenue of $3.11 billion, up 44.1% year over year, and non-GAAP EPS of $4.10 against a $3.50 consensus. Non-GAAP gross margin printed at 47.0%, up from 36.2% a year earlier, and free cash flow reached $953 million versus $216 million in the prior-year quarter. The company also retired roughly $641 million in debt during the quarter.

CEO Dave Mosley framed the setup as durable, telling investors that, “Seagate is entering a new era of structural growth as AI applications amplify data creation and support sustained storage demand.” Guidance for the June quarter calls for revenue of $3.45 billion plus or minus $100 million and non-GAAP EPS of $5.00 plus or minus $0.20.

Western Digital: A Pure-Play HDD Story Crosses 50% Gross Margin Western Digital (NASDAQ:WDC), now a pure-play HDD company after the February 2025 spin-off of its Flash business into Sandisk, reported Q3 FY2026 revenue of $3.337 billion, up 45.47% year over year, with non-GAAP EPS of $2.72 versus a $2.392 estimate. Non-GAAP gross margin reached 50.5%, and free cash flow came in at $978 million.

CEO Irving Tan tied the result to AI workloads, stating that “Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.” Management also raised the quarterly cash dividend by 20% to $0.15 per share and repurchased $752 million of stock during the quarter. Q4 FY2026 guidance calls for revenue of about $3.65 billion, non-GAAP gross margin of 51%-52%, and non-GAAP EPS of $3.25 plus or minus $0.15.

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Memory Stocks Are Sending a Different Signal While Seagate and Western Digital attracted modestly bullish options activity, the rest of the memory sector looked far less optimistic. Renick noted that Micron was the most actively traded name of the morning, with nearly 300,000 options contracts changing hands and implied volatility around 100. Even so, the stock remained only slightly above its pre-earnings level, suggesting traders are still uncertain about its near-term direction.

SanDisk also came under pressure, with more than twice as many call options sold as bought. The bearish positioning coincided with reports that South Korean rivals SK Hynix and Samsung plan to invest roughly $500 billion in new manufacturing hubs. Renick also noted that the DRAM ETF was down 6.5%, underscoring the broader weakness across memory stocks.

What Investors Should Watch Next Melius Research believes Seagate and Western Digital are well positioned to benefit from a favorable supply-and-demand backdrop in hard disk drives, a thesis supported by both companies’ record margins, strong free cash flow, and improving shareholder returns.

The next signal to watch is whether options traders begin matching that optimism. If bullish options activity and trading volume increase, it could suggest broader investor confidence is building behind the analyst call. If traders continue favoring hedges in names like Micron and SanDisk instead, it would indicate investors remain cautious about the broader memory sector despite the bullish outlook for Seagate and Western Digital.

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Micron Technology (NASDAQ:MU | MU Price Prediction) stock is up about 6% in Monday morning trading to around $1,199, leading a broad memory and storage rally into the company’s Wednesday earnings report. Western Digital (NASDAQ:WDC) stock is also up by about 6% to around $788, while SanDisk (NASDAQ:SNDK) stock is up 5% to around $2,294.

The group is resisting worries about renewed U.S.-Iran tensions, including fresh strike threats and concerns over the Strait of Hormuz.

That memory and storage are catching a bid despite the geopolitical backdrop underscores how much conviction has built around the so-called memory supercycle. The memory/storage complex hit record highs last Thursday, with Friday, June 19, closed for Juneteenth.

Needham’s $1,550 Micron Target Lights the Fuse The freshest catalyst is a major Wall Street endorsement. Needham raised its price target on Micron stock to $1,550, up from $500, and maintained a Buy rating ahead of Wednesday’s report.

The firm argued that the memory market has continued to strengthen over the past 90 days, with fundamentals “stronger for longer” thanks to robust demand, a firm pricing environment, and limited capacity additions. Needham also believes long-term agreements being signed across the industry are giving suppliers, including Micron, better demand visibility that extends over multiple years.

Micron stock has been a freight train into the earnings report. The shares are up 298% year to date (YTD) through June 18, with last quarter’s results showing revenue of $23.86 billion and a guide for fiscal Q3 2026 revenue of $33.5 billion plus or minus $750 million.

Storage Peers Get Their Own Upgrades The bullish analyst drumbeat isn’t isolated to Micron. JPMorgan raised its Western Digital price target to $650 from $530 (Overweight) on June 12, citing a more positive pricing view and accelerating year-over-year price increases for HDD makers. Wells Fargo raised its Western Digital stock price target to $575 from $500 (Overweight) on June 1.

Micron stock also received price target upgrades last week from Wedbush, Rosenblatt, and Stifel. Adding to the demand-side narrative, Apple (NASDAQ:AAPL) CEO Tim Cook’s recent comments that memory and storage cost increases are making Apple price hikes “unavoidable” helped fuel the sector’s bullish momentum last week.

SanDisk stock, the NAND-focused spinoff, has ridden the same wave. Last quarter, SanDisk reported revenue of $5.95 billion with gross margin of 78%, validating the AI-storage thesis.

Bubble or Supercycle? The Debate Heats Up Not everyone is convinced that the move can continue without a pause. Technical readings are flashing yellow across the group, with RSI readings of 66.4 for Micron, 70.9 for SanDisk, 74 for Seagate, and 78 for Western Digital, with 70-plus generally considered overbought.

The crowd is also split. Retail sentiment on StockTwits has been bearish for SanDisk and Micron even amid the rally, even as the Polymarket contract for Micron’s Wednesday report is pricing in a 97% probability of a non-GAAP EPS beat above the $19.66 consensus. The analyst consensus target on Micron stock sits at $945.6, well below the current price, reflecting how far the tape has run ahead of Street models.

What to Watch The next pivot is Wednesday, June 24, after the close, when Micron reports its fiscal Q3 2026 results. Investors can watch for whether management’s guidance validates the “stronger for longer” thesis or gives the overbought tape a reason to cool.

Until then, the memory complex looks willing to ignore the macro noise. Keep an eye on whether Micron stock can hold above the $1,200 level, and whether Western Digital stock and SanDisk stock track it tick for tick.