Western Digital Stock Rockets on AI Data Boom — Analysts Eye Even Bigger Gains
Western Digital’s stock has been on a tear, climbing sharply in mid-October. On Oct. 23 it closed at $126.63, up 5.1% for the dayinvesting.com, and roughly double its price at the start of 2025ts2.tech. The rally reflects strong industry demand: Western Digital says the exploding need for AI and cloud storage is driving customers to hoard high-capacity hard drives. In fact, the company announced in mid-October that it will raise prices across its HDD product line to manage “booming demand”investopedia.com. CEO Irving Tan and other executives have repeatedly stressed that “HDDs will continue to remain the foundation of the world’s data infrastructure” in an AI-driven erastocktitan.netchartmill.com. To support enterprise customers, Western Digital even opened an expanded AI-focused System Integration and Test lab to speed development and deployment of its driveschartmill.com. This surge follows strong fundamental results. In its latest quarter, WDC generated $2.61 billion in revenue, a 30% year-over-year jumpts2.tech. The company swung back to profitability and improved margins, after a 2022–2023 downturn, and initiated shareholder returns – a new $0.10 quarterly dividend and a $2 billion share buyback plants2.tech. Management guided that fiscal Q1 2026 revenue should rise about 22% annuallyts2.tech, reflecting a continuation of the recovery. With debt