Western Digital (WDC) benefits from AI infrastructure buildout, securing long-term agreements and advancing technology. The stock surged 804% to $455.80.
The storage industry is consolidating into an oligopoly. WDC has secured contracts through 2028, providing unprecedented revenue visibility.
Technology advances: Heat-Assisted Magnetic Recording enters qualification at a key customer. Ultra Shingled Magnetic Recording now represents over 50% of nearline products.
Financial highlights: Debt expected to be eliminated by early 2026. Earnings per share estimates range from $8.68 to $12.42.
Risks: Execution risks from new technologies and competitive pricing pressure could squeeze margins.
