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AI And Hyperscaler Demand Will Expand Storage Opportunities

Published
08 Aug 24
Updated
24 Sep 25
AnalystConsensusTarget's Fair Value
US$97.91
9.2% overvalued intrinsic discount
24 Sep
US$106.88
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1Y
54.0%
7D
0.2%

Author's Valuation

US$97.91

9.2% overvalued intrinsic discount

AnalystConsensusTarget Fair Value

Shared on24 Sep 25
Fair value Increased 9.83%

Western Digital’s analyst price target has risen from $89.14 to $97.91, driven by sharply improving demand for storage products fueled by AI and cloud expansion, price increases amid supply tightness, and growing confidence in its technology leadership. Analyst Commentary Bullish analysts cite sharply improving demand for both NAND and hard disk drives, primarily driven by artificial intelligence, cloud storage expansion, and overall data growth, with lead times for high-capacity drives extending significantly and industry supply remaining tight despite increased output.

Shared on09 Sep 25
Fair value Increased 1.19%

Analysts have raised Western Digital's price target to $89.14, driven by accelerating AI-led storage demand, improving fundamentals, and greater confidence in the company’s technology roadmap, partially offset by dilution from convertible notes. Analyst Commentary Bullish analysts cite accelerating AI-driven demand for storage, forecasting robust fundamentals and industry-wide tailwinds into 2026.

Shared on04 Aug 25
Fair value Increased 28%

The sharp increase in Western Digital’s consensus price target is primarily driven by a significant turnaround in projected revenue growth from -11.2% to 7.3% annually, resulting in a fair value revision from $68.67 to $85.33. What's in the News Western Digital provided financial guidance for the fiscal first quarter of 2026 with expected revenues of $2.7 billion.

Shared on07 May 25
Fair value Increased 14%

Shared on30 Apr 25
Fair value Decreased 5.08%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on23 Apr 25
Fair value Decreased 0.89%

AnalystConsensusTarget has decreased shares outstanding growth rate from 0.1% to 0.0%.

Shared on16 Apr 25
Fair value Decreased 13%

AnalystConsensusTarget has decreased future PE multiple from 30.8x to 25.8x.

Shared on09 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on02 Apr 25
Fair value Increased 3.28%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on26 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on19 Mar 25
Fair value Decreased 4.51%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on10 Mar 25
Fair value Increased 19%

AnalystConsensusTarget has decreased profit margin from 15.7% to 13.0%, increased future PE multiple from 17.0x to 31.5x and increased shares outstanding growth rate from 0.0% to 0.1%.