Western Digital Corporation (WDC) is a leading global data storage technology company headquartered in San Jose, California. The company designs, manufactures and supplies hard disk drives (HDDs) and high-capacity storage solutions that enable businesses and consumers to store, manage and access large volumes of digital information. With a market cap of $121.2 billion, its products serve a wide range of applications, including cloud data centers, enterprise storage systems, edge computing, video surveillance, desktop computers, notebooks and external consumer storage devices.
Shares of this leading supplier of data storage solutions have substantially outperformed the broader market over the past year. WDC has gained 67.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 8.2%. In 2026, WDC stock is up 55.4%, surpassing the SPX’s 7.4% rise on a YTD basis.
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Zooming in further, WDC’s outperformance is also apparent compared to the State Street Technology Select Sector SPDR ETF (XLK). The exchange-traded fund has gained about 10.1% over the past year and 12.8% on a YTD basis.
www.barchart.com Western Digital shares fell 17% in the afternoon trading session on Nov. 5 as concerns over potential restrictions on AI data center development triggered a broader sell-off across the semiconductor and storage industries. Calls from incoming Democratic senators to slow data center construction raised concerns about future demand for AI-related computing and storage infrastructure, weighing on investor sentiment toward Western Digital.
For the current fiscal year, ending in June 2027, analysts expect WDC’s EPS to grow 141% to $23.62 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimates in each of the last four quarters.
Among the 24 analysts covering WDC stock, the consensus is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
www.barchart.com This configuration is bearish than two months ago, with 19 analysts suggesting a “Strong Buy.”
On Oct. 23, TD Cowen lowered its price target on Western Digital to $430 from $540 while maintaining a “Buy” rating. Analyst Krish Sankar cited the company's increased capital expenditure amid strong demand and growing uncertainty over the appropriate valuation multiple for HDD manufacturers following recent industry developments involving Toshiba.
The mean price target of $614.96 represents a 129.8% premium to WDC’s current price levels. The Street-high price target of $1,050 suggests an ambitious upside potential of 292.3%.
On the date of publication, Kritika Sarmah did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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