Western Digital (WDC) Is Up 9.8% After Raising Hard Drive Prices Amid Surging AI Demand

• Recently, Western Digital announced immediate price increases across its entire range of hard disk drives in response to surging AI infrastructure demand from major technology companies.
• This rapid price adjustment highlights the company's pivotal role as large-scale data storage providers experience unprecedented momentum amidst accelerating investments in AI-driven computing solutions.
• We'll examine how Western Digital's ability to leverage AI-related demand for storage may influence its investment narrative moving forward.

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Western Digital Investment Narrative Recap

To be a Western Digital shareholder right now, it's important to believe that demand for AI-driven data storage will remain robust and that the company can retain pricing power with its largest customers. The immediate price hike across its full hard disk lineup signals strong positioning with hyperscalers, helping to support the current narrative, but also keeps the spotlight squarely on concentration risk as the key vulnerability if top tech clients alter buying behavior.

Amid this, Western Digital’s recent Q4 2025 results revealed a sharp return to profitability and higher sales, offering some reassurance that the company can capitalize on AI demand surges. As momentum builds, however, this also intensifies attention on how durable this trend really is, and on the sustainability of Western Digital’s improved margins following rapid market shifts.

By contrast, investors should be aware that Western Digital’s fortunes remain closely tied to a handful of hyperscale clients…

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

Western Digital's outlook forecasts $11.9 billion in revenue and $2.2 billion in earnings by 2028. This reflects a 7.6% annual revenue growth rate and a $0.6 billion earnings increase from the current $1.6 billion.

Uncover how Western Digital's forecasts yield a $89.14 fair value, a 21% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided four distinct fair value estimates for Western Digital, ranging from US$85 to US$106.32. While investor optimism about AI-driven storage demand is high, you may want to examine how Western Digital’s reliance on cloud customers could amplify both opportunities and challenges over time.

Explore 4 other fair value estimates on Western Digital - why the stock might be worth 24% 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 3 key rewards and 3 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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