New York, Feb 3, 2026, 11:01 EST — Regular session
- Western Digital shares climbed roughly 6.6%, reaching $288.13 in late-morning trading
- The company greenlit an extra $4.0 billion for buybacks, with roughly $484 million still available from the previous plan
- Attention shifts to Innovation Day on Tuesday, where details on capital returns and AI-storage demand will be unveiled
Western Digital’s stock jumped roughly 6.6% Tuesday, hitting about $288.13 in late-morning Nasdaq trading. The move followed the company’s announcement of a $4 billion increase to its share repurchase program. Yahoo
The move is significant since buybacks shrink the share count, boosting earnings per share. They also tend to support the stock price when momentum slows down.
The stock has already been on a tear, climbing roughly 57% in 2026 after more than tripling last year. That leaves little margin for error going forward.
Western Digital’s board has given the green light to add $4.0 billion more to its existing share repurchase program, effective immediately. As of Feb. 2, the company still had roughly $484 million left from the previous authorization. It plans to buy back shares through the open market, privately negotiated transactions, or via a Rule 10b5-1 trading plan—a preset framework for executing stock purchases. Irving Tan said the boost in authorization “demonstrates our confidence in WD’s future and commitment to shareholder value.” Businesswire
The company also pointed out that the scale and timing of repurchases depend on market conditions and other corporate priorities, with the option to pause or halt the program at any time.
Investors are piling into firms linked to AI data centers as Western Digital unveils a $4 billion buyback. Memory chip shortages have driven prices higher and stretched delivery times. Last week, Western Digital projected fiscal Q3 revenue and profits above Wall Street’s estimates, fueled by strong demand for hard drives and flash storage powering AI servers. Reuters
Seagate Technology also edged up, but Western Digital surged ahead, boosted by the buyback news. Traders zeroed in on that announcement, pushing shares higher than the rest of the group.
Still, authorization doesn’t guarantee action. If storage demand drops, prices move against the company, or cash is redirected to investments and debt paydown, buybacks can stall despite billions on the table.
Tuesday’s key event is Western Digital’s Innovation Day in New York, running from 9:30 a.m. to 11:30 a.m. ET. Investors want updates on AI-driven demand and any clues on the pace of the company’s buyback program. Wdc
