Update shared on24 Sep 2025
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.
- Price increases are being implemented across Western Digital’s HDD portfolio due to "unprecedented demand," leading to higher selling prices, margin expansion, and upward revisions to both revenue and EPS estimates through FY26.
- Improved supply chain dynamics and pricing power are evident, with price improvements and prolonged supply tightness expected to support industrywide revenue growth and further price target increases across the storage sector.
- Post investor meetings and conference interactions, some analysts have become more confident in Western Digital’s technology roadmap and competitive positioning, disputing views that the company is a technology laggard, and designating it a Top Pick in hardware coverage.
- A few bearish analysts have identified risks such as cyclical market corrections and share dilution effects related to convertible notes, but the overriding outlook remains positive given persistent demand and secular drivers.
What's in the News
- Western Digital completed the repurchase of 2,800,000 shares (0.8% of shares) for $151.12 million under its recent buyback program.
- The company provided financial guidance for fiscal Q1 2026, expecting revenues of $2.7 billion.
Valuation Changes
Summary of Valuation Changes for Western Digital
- The Consensus Analyst Price Target has risen from $89.14 to $97.91.
- The Future P/E for Western Digital has risen from 18.48x to 20.27x.
- The Consensus Revenue Growth forecasts for Western Digital remained effectively unchanged, moving only marginally from 7.6% per annum to 7.8% per annum.
Disclaimer
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