
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital's stock outlook benefits from the continued rise in UltraSMR adoption, which has surpassed a 50% mix in its nearline portfolio, driving expected gross margin improvements. The company reported significant growth in exabyte shipments, reaching 215EB and a 22% year-over-year increase, with average selling prices (ASPs) per HDD rising to $216. Additionally, the cloud segment's revenue, which constituted 89% of total sales at $2.7 billion and grew 27.5% year-over-year, underscores the robust demand for HDDs in data centers, positioning Western Digital favorably in the market.
Bears say
The negative outlook on Western Digital's stock stems from cautious capital expenditure plans, which are projected at only 4%-6% of sales, thereby restricting the potential for production to meet demand amidst an anticipated technology roadmap acceleration. Additionally, despite a shift toward higher capacity and margin drives, industry oversupply poses significant risks to the continuation of the currently favorable dynamics. Lastly, while pricing has stabilized after a period of decline, the muted enthusiasm regarding Western Digital's progress with Heat-Assisted Magnetic Recording (HAMR) from industry participants raises further concerns about the company's competitive position.
This aggregate rating is based on analysts' research of Western Digital and is not a guaranteed prediction by Public.com or investment advice.
Western Digital (WDC) Analyst Forecast & Price Prediction
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