Western Digital (WDC) is positioned for substantial growth in the AI storage sector, with an analyst reiterating a Strong Buy rating based on a successful transition from expectations to proven revenue growth. The company is projected to achieve a 45% revenue increase in Q3 2026, driven by factors such as rising nearline cloud demand, an enhanced UltraSMR mix, declining costs per terabyte, and the implementation of Heat-Assisted Magnetic Recording (HAMR) technology. The analyst estimates that WDC's earnings per share (EPS) could reach $20.70 by 2028. With a price target of $1,107, this represents a potential upside of approximately 108% from its current price of $531. However, there are risks to consider, including a possible slowdown in AI-driven cloud storage and the execution challenges associated with HAMR technology. The analyst holds a long position in WDC shares and emphasizes that this analysis reflects their personal opinions.