
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital is poised for substantial growth, with projections indicating that cloud revenue will rise to 88% of total revenue by FY25, significantly up from 75% in FY22 and 55% in FY19. The company's nearline HDD total addressable market (TAM) is anticipated to expand at a 14% compound annual growth rate, fueled by the increasing demand driven by generative AI, with growth expected from $13 billion in CY24 to $23 billion in CY26. Furthermore, the introduction of a quarterly dividend starting in Q4 FY25, alongside expectations of meaningful growth in the dividend over the coming years, reflects a commitment to returning value to shareholders.
Bears say
Western Digital faces significant risks related to potential oversupply and pricing weakness, which could hinder profitability and suggest that the industry may remain cyclical, with normalized earnings power not improving beyond historical levels. Investors have expressed disappointment with Western Digital's gross margin guidance, which fell short of the anticipated 40% threshold, contributing to selling pressure on the stock. Lastly, while the company is strategically focusing on profit over market share, this approach may lead to prolonged periods of undersupply, further complicating its financial outlook.
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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