TLDR
- JPMorgan raised its price target on WDC to $650 from $530, maintaining an Overweight rating, citing improving HDD pricing
- Wells Fargo also lifted its price target to $575 from $500 with an Overweight rating
- Western Digital posted 45% year-over-year revenue growth in fiscal Q3 2026, with 11% sequential revenue growth
- Q4 fiscal 2026 revenue guidance is set at $3.65 billion, implying 9.4% sequential growth
- WDC stock is up 333% year-to-date, trading around $746.93
Western Digital (WDC) has had a year most stocks can only dream about. Up 333% year-to-date and trading around $746.93, the company is quietly one of the biggest winners of the AI buildout — even if Sandisk (SNDK) is grabbing most of the headlines with its 820% gain.
Western Digital Corporation, WDC
Wall Street has taken notice. JPMorgan raised its price target on WDC to $650 from $530 on June 12, keeping an Overweight rating in place. The bank told investors it was lifting earnings forecasts for HDD companies, driven by a more positive view on pricing and the margins that should follow.
JPMorgan expects year-over-year price increases across the industry to pick up pace in coming quarters, with sequential price gains holding in the low- to mid-single digit range. That adds up over time.
Wells Fargo also moved its target higher, lifting it to $575 from $500 on June 1, while reiterating its own Overweight rating.
Strong Earnings Back the Bullish Case
The analyst upgrades aren’t just optimism — the numbers are backing them up. Western Digital reported 45% year-over-year revenue growth in its fiscal Q3 2026. On a sequential basis, revenue grew 11%, a figure that tends to signal momentum in AI-driven hardware stocks.
Guidance for Q4 fiscal 2026 puts revenue at $3.65 billion, which would represent 9.4% sequential growth. That’s the kind of trajectory that keeps institutional investors interested.
CEO Irving Tan laid out the investment case plainly in the Q3 press release: “Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.”
That’s the core of the Western Digital thesis. More AI workloads mean more data. More data means more need for storage. Western Digital makes the drives that store it.
HDD Demand Tied Directly to AI Infrastructure
Hyperscalers continue loading up on AI chips, and those chips need somewhere to put the data they generate. Western Digital’s enterprise hard disk drives sit at that intersection.
Grand View Research forecasts a 30.6% compound annual growth rate for the broader market through 2033. There are currently 809 data centers in planning stages. Each one will need storage infrastructure.
Western Digital stock hit a 52-week high of $799.87, with current trading around $746.93. Market cap stands at $257 billion.
Micron Technology recently crossed the $1 trillion market cap milestone, and Sandisk continues its eye-catching run. Western Digital, with a 333% gain year-to-date, has outperformed almost every stock in the broader market this year.
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