New York, Feb 2, 2026, 18:36 (EST) — After-hours
- Western Digital shares climbed roughly 8% before barely moving in after-hours trading.
- Stocks tied to storage and memory climbed as traders returned to AI infrastructure plays.
- On Feb. 3, investors will focus on the company’s “Innovation Day” for new targets and updated road maps.
Western Digital shares climbed roughly 8% Monday, closing the regular session at $270.21. In after-hours trading, the stock hovered near $270.23, after moving between about $241 and $275 earlier in the day. (Investing)
Western Digital resurfaced on momentum traders’ radars following a shaky period in late January, as investors linked data storage directly to AI expansion. Hard drives and flash storage might not grab headlines, but the hyperscalers—the major cloud players—are snapping them up in bulk.
The next catalyst is coming quickly. Western Digital announced during its latest earnings call that it will host an Innovation Day in New York on Feb. 3 to present updated road maps and a refreshed financial model. CEO Irving Tan also told investors the company is “pretty much sold out for calendar ’26.” (The Motley Fool)
The broader market gave the S&P 500 a boost, pushing it up 0.54% to just below a record close. Chipmakers and AI-related stocks led the charge, with data-storage spinoff Sandisk jumping 15.4% and Micron rising 5.5%. “The fundamentals are good and earnings are strong,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. (Reuters)
Talk of tight supply helped fuel the rally. Tech research firm IDC called the memory-chip shortage “unprecedented,” while William Blair analysts highlighted AI data center demand outpacing supply—a trend they expect to continue through 2027. (Business Insider)
Western Digital’s own guidance has held up the bull case. Last week, the company projected fiscal third-quarter revenue at $3.2 billion, with a $100 million margin either way—well above Wall Street’s $2.96 billion estimate, according to LSEG data cited by Reuters. It also forecast adjusted earnings of $2.30 per share, plus or minus 15 cents, beating consensus estimates of $1.96. (Reuters)
Western Digital reported a 25% jump in second-quarter revenue to $3.02 billion, according to its Jan. 29 statement. CEO Tan credited “disciplined execution” for meeting demand in what he called an “AI-driven data economy.” CFO Kris Sennesael added that the business “continues to strengthen.” The company announced a quarterly cash dividend of $0.125 per share, payable March 18 to shareholders on record March 5. It also completed the spin-off of its flash business into Sandisk in February 2025. (Western Digital)
That said, this trade is crowded. Storage and memory stocks often swing sharply when customers halt orders, and the group has proven it can gap up or down on news.
Pricing remains a wild card. Bulls count on demand outpacing supply, but if constraints ease or AI-related capital expenditures slow down, those high-multiple stocks could take the earliest hit.
Tuesday’s session centers on what’s unveiled at Innovation Day: capacity targets, product schedules, and the true shelf life of the AI-driven order book. Investors will keep an eye on big-tech earnings this week for signs of whether cloud spending remains steady.
