Western Digital Positioned for Growth in AI Storage Market
Western Digital: The AI Storage Trade Still Has Room To Run

Image: Seeking Alpha
Western Digital (WDC) is projected to see significant revenue growth driven by increasing demand for AI storage solutions. An analyst maintains a Strong Buy rating, with a price target of $1,107, indicating a potential upside of 108% from the current price of $531.
- 01Western Digital anticipates a 45% revenue growth in Q3 2026 due to rising demand for AI storage.
- 02The company's growth is supported by factors such as nearline cloud demand and advancements in HAMR technology.
- 03The estimated earnings per share (EPS) for 2028 is projected at $20.70.
- 04A price target of $1,107 suggests an upside potential of about 108% from the current share price.
- 05Key risks include a potential slowdown in AI-driven cloud storage and challenges in executing HAMR technology.
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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.
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