New York, Feb 2, 2026, 10:52 ET — Regular session
- Western Digital shares climbed in morning trading after slipping earlier.
- Ahead of Tuesday’s Innovation Day event, investors are adjusting their positions.
- Attention centers on AI-fueled data center demand and clearer pricing outlooks for high-capacity hard drives.
Western Digital shares climbed roughly 5.4% to $263.63 on Monday, following a session that saw the stock fluctuate between $240.70 and $266.82.
The gains kept the data-storage maker in focus as investors hunt for clear winners amid the AI data center build-out, which demands more storage to handle expanding datasets.
Western Digital is doubling down on hard disk drives—the go-to choice for cloud operators needing cost-effective, high-capacity storage. But a fresh company update this week might shake up assumptions about how reliable that demand actually is.
Last week, the company set its sights on third-quarter adjusted revenue of $3.2 billion, with a $100 million margin either way—well above analysts’ $2.96 billion forecast, according to LSEG data. Adjusted earnings per share were also projected at $2.30, plus or minus 15 cents, outperforming estimates of $1.96. (Reuters)
In its quarterly update, Irving Tan credited “disciplined execution” for the company’s strong showing amid an AI-driven storage market. Kris Sennesael added, “Our business continues to strengthen,” as Western Digital raised its margin outlook. The company reported $3.02 billion in quarterly revenue and a non-GAAP gross margin of 46.1%, also announcing plans to spin off its flash unit into SanDisk in 2025. (Western Digital)
Barron’s reported Monday that Sennesael highlighted longer-term customer commitments as hyperscalers aim to secure supply. Brokerages remain generally upbeat ahead of the company’s event. Evercore ISI analyst Amit Daryanani noted in a recent report that Western Digital is in a “structurally stronger position,” according to the article. (Barron’s)
The rise coincided with strength in storage and memory stocks, as Seagate Technology climbed roughly 6%, while Micron Technology gained about 4% in early trading.
But the trade can reverse quickly. After a sharp drop in silver and a wider sell-off in risk assets, markets have been volatile. Storage also remains cyclical—if cloud spending slows or pricing shifts, the sector could feel the impact. (Reuters)
Investors will turn their attention to Western Digital’s Innovation Day on Tuesday in New York, running from 9:30 a.m. to 11:30 a.m. ET. The event will be streamed live on the company’s investor website. (Western Digital)
