Western Digital (WDC) Stock: AI Storage Demand, Earnings Growth, and Competition

Western Digital completed its separation from SanDisk in 2025 and now focuses on enterprise-capacity hard drives. Fiscal first-quarter 2027 revenue reached $4.38 billion, up 55% year over year, while non-GAAP earnings per share rose 161% to $4.64. Demand for high-capacity drives and improved pricing lifted gross margin to about 58%, and operating cash flow reached $1.6 billion. Management expects second-quarter revenue to grow 66%–72% year over year and raised its quarterly dividend by 17% to $0.175 per share.

Strong results have not prevented sharp share-price swings. Concerns about data center approval policies contributed to a 17.35% drop on November 5. The shares then gained nearly 10% on November 9 and 9% on November 11 as technology stocks recovered and investors reassessed storage demand, before falling about 5.2% on November 12. WDC recently traded between $297 and $314. Expansion and acquisition rumors have also raised questions about HDD competition, while insider sales have added to short-term caution.

Western Digital’s annual shareholder meeting is scheduled for November 20, 2026, with investors watching for updates on capital spending and supply-demand conditions. Analyst views remain broadly positive on long-term demand, but target prices vary. Evercore ISI maintained a $575 target, while the median targets from several firms range from about $610 to $650. AI data center demand, capacity expansion, competition, and share-price volatility remain key factors in evaluating WDC. This article is for informational purposes only and is not investment advice.