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Western Digital: Time To Jump In Before Beast Mode Arrives Again
Seeking Alpha • • business
Key Points:
- Western Digital (WDC) is benefiting from increased AI-driven demand for large-capacity, cost-effective storage solutions, particularly in the HDD market.
- Approximately 90% of WDC's revenue now comes from cloud business, supported by long-term contracts that provide pricing visibility through 2031.
- The company is advancing its next-generation HAMR technology with 44TB and 50TB drives expected to boost shipments through fiscal year 2027.
- WDC's valuation has become more attractive, trading at 22.9 times forward earnings, down from over 40 times in June, suggesting potential upside.
- Continued growth is anticipated as AI adoption expands through 2027 and beyond, indicating that Western Digital's growth trajectory is likely to persist.
