
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital's adoption of UltraSMR technology, which has surpassed 50% in its nearline portfolio, is expected to enhance gross margins as demand transitions towards higher capacity drives. The company's cloud segment, representing 89% of total revenue, experienced a robust 27.5% year-over-year increase, indicating strong performance driven by data center demand. Additionally, the rise in exabyte shipments by 22% year-over-year, alongside a steady increase in average selling prices, positions Western Digital favorably within the competitive HDD market.
Bears say
The negative outlook on Western Digital's stock is driven by concerns over shorter-than-expected business cycles that have resulted in diminished cross-cycle profitability, indicating potential challenges in sustaining stable financial performance. Additionally, the execution of the upcoming Heat-Assisted Magnetic Recording (HAMR) technology appears to be faltering, which could contribute to market share losses and further strain financial metrics. Finally, the company's cautious forward guidance contrasts with that of its primary competitor, Seagate, suggesting a potential for disappointment in profitability moving forward, exacerbated by an oversupply situation that could undermine pricing power.
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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