Western Digital (WDC) Is Up 14.6% After Surpassing Quarterly Estimates and Raising Forward Guidance

• In recent days, Western Digital received a wave of positive analyst sentiment following its quarterly results surpassing expectations and management's upbeat guidance for the months ahead.
• This renewed attention highlights Western Digital's expanding role in enabling AI-driven data workloads for hyperscalers, cloud providers, and enterprises worldwide.
• We'll explore how the firm's robust quarterly performance and bullish analyst outlook may bolster Western Digital's longer-term investment narrative.

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Western Digital Investment Narrative Recap

To be a Western Digital shareholder, you need to believe in the continued growth of global data storage needs, especially from AI and cloud innovation, and Western Digital’s ability to deliver the technology that hyperscalers and enterprises require. While the recent surge in analyst sentiment and positive earnings guidance strengthens confidence in near-term hyperscaler demand, a major catalyst for the company, it does not significantly reduce the ongoing risk that a few customers still account for the majority of revenue, nor the potential impact should these firms shift to custom or alternative storage solutions.

One of the most relevant announcements tied to these catalysts is Western Digital’s introduction of advanced storage solutions for AI and cloud workloads in May 2025. These new offerings directly target the expanding needs of hyperscale and enterprise customers, underlining the company’s focus on staying at the forefront of data infrastructure, a vital point given the recent analyst optimism.

But while enthusiasm for AI-powered growth is strong, investors should also be aware that heavy reliance on a narrow set of hyperscale customers could mean...

Read the full narrative on Western Digital (it's free!)

Western Digital's outlook points to $11.8 billion in revenue and $2.2 billion in earnings by 2028. This is based on an expected annual revenue growth rate of 7.3% and an earnings increase of $0.6 billion from the current $1.6 billion.

Uncover how Western Digital's forecasts yield a $88.10 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members see Western Digital’s fair value ranging widely from US$85 to above US$103 across three separate perspectives. Many highlight the company’s deep relationships with hyperscalers as a growth driver, but this also introduces significant concentration risk for future revenues.

Explore 3 other fair value estimates on Western Digital - why the stock might be worth 8% less than the current price!

Build Your Own Western Digital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Western Digital research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Western Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Digital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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