NEW YORK, Feb 5, 2026, 18:10 EST — After-hours
Western Digital Corp shares slipped 3.4% to $260.19 in after-hours trading Thursday, shedding $9.18 from the previous close. The stock fluctuated between $250.60 and $273.20 during the session.
The late-day slide is significant as Western Digital remains a key focus among U.S. storage stocks this week. Investors are debating if the AI-driven data center boom is truly translating into lasting pricing power for suppliers.
This comes as traders scramble for any hint of how management intends to support its new narrative with actual cash returns, and whether the recent rally was just momentum-driven.
On Tuesday, the company’s board approved an extra $4.0 billion for share buybacks, with roughly $484 million left from a previous authorization. CEO Irving Tan described the boost as a “confidence” signal but flagged that buybacks might be halted if market conditions shift. (Western Digital)
In a separate U.S. regulatory filing, Tan offloaded 20,000 shares on Feb. 2 as part of a Rule 10b5-1 plan, a pre-arranged trading strategy commonly utilized by executives. After the sale, he holds 623,586 shares. (SEC)
At this week’s Innovation Day, San Jose-based WD laid out plans for a 40-terabyte hard drive currently in qualification with two hyperscale clients, aiming for volume production in the latter half of 2026. The company also highlighted heat-assisted magnetic recording (HAMR), expecting to ramp production in 2027 and targeting 100-terabyte drives by 2029. WD’s Tan said the firm has been working to “reimagine the hard drive” for AI, while IDC’s Ed Burns noted WD “has genuinely transformed” in response to customer infrastructure demands. (Western Digital)
U.S. stocks slipped in a downbeat session. The S&P 500 proxy SPY dropped 1.2%, while the Nasdaq-100 tracker QQQ declined 1.4%. Storage rivals also took hits: Seagate Technology slid 3.3% and NetApp lost 0.9%.
Citi bumped its price target on Western Digital to $335 from $325 and maintained a Buy rating following the company’s analyst day. The bank highlighted a long-term earnings-per-share outlook of “$20-plus,” according to TheFly. (TipRanks)
That said, the setup isn’t one-sided. Large buybacks often take time to reflect in the tape, and aggressive capacity plans frequently miss their marks. Should cloud spending ease up or clients resist price hikes, the recent rally leaves the stock vulnerable to setbacks.
Investors enter Friday’s session hoping for clues that the stock might hold its ground, while watching closely for early moves on the fresh buyback authorization. Outside the company chatter, the markets are eyeing the U.S. January employment report set for Feb. 11, which could shake up rate forecasts and risk appetite. (Bureau of Labor Statistics)
