New York time check: It is Friday, December 26, 2025, 3:24 p.m. ET in New York, and U.S. stock markets are open for regular trading.
Western Digital Corporation (NASDAQ: WDC) shares are trading higher in the post-Christmas session, supported by the market’s continued appetite for AI infrastructure beneficiaries—and by the company’s own fundamentals following a transformational year.
As of 3:24 p.m. ET, WDC stock is $181.33, up $1.77 (+0.99%) on the day, after trading between $178.04 and $183.77. Volume is about 2.11 million shares so far.
Stock market context: light holiday volume near record highs
Today’s tape matters, because holiday-thinned liquidity can exaggerate price moves—up or down.
- U.S. trading resumed after Christmas with light volume and modest index moves: the S&P 500 down ~0.1%, the Dow down ~0.2%, and the Nasdaq up ~0.1% in early/post-holiday action, according to AP’s market recap. [1]
- Reuters similarly described Wall Street as hovering near all-time highs in a low-catalyst, low-volume session. [2]
- If you’re wondering whether markets were actually open today: Reuters reported that major U.S. exchanges remained open as scheduled on Dec. 24 and Dec. 26. [3]
That backdrop is important for WDC investors: low liquidity + a big 2025 run can increase intraday volatility, especially into the close and around year-end positioning.
Why Western Digital stock remains in focus: “AI storage” has become its core narrative
Western Digital’s 2025 story has centered on one simple idea: AI creates data, and data has to live somewhere—often on large, cost-efficient storage, where hard drives remain competitive for “nearline” and archival use cases.
At its Investor Day, Western Digital said internal projections implied HDD exabyte shipments could grow at a 23% CAGR from 2024 to 2028, driven by AI-related workloads and expanding “data lakes.” [4]
That argument has also shown up repeatedly across Wall Street research and mainstream market coverage:
- Reuters reported that Western Digital and peers surged in 2025 as AI-driven infrastructure buildouts boosted demand for storage hardware, with data-center capex expanding across large tech. [5]
- The Wall Street Journal highlighted a prominent AI trade in 2025 that emphasized “unglamorous” infrastructure—including hard-disk and flash-memory suppliers such as Western Digital—as a way to monetize the AI buildout beyond headline GPU names. [6]
In plain terms: many investors now treat WDC as an “AI picks-and-shovels” stock—more cyclical than megacap software, but potentially powerful when supply/demand tightens.
Western Digital’s most recent earnings: strong results and upbeat guidance
A major reason WDC continues to command attention is that the company’s reported results and outlook have reinforced the demand thesis.
In its fiscal Q1 2026 report (period ended Oct. 3, 2025), Western Digital posted:
- Revenue: $2.82 billion (up 27% year over year)
- Non-GAAP diluted EPS: $1.78
- Operating cash flow: $672 million and free cash flow: $599 million [7]
Management explicitly tied the momentum to cloud storage demand and AI-driven data creation. [8]
For fiscal Q2 2026, Western Digital guided above many Street expectations at the time, projecting:
- Revenue: ~$2.9 billion (± $100 million)
- Adjusted EPS: ~$1.88 (± $0.15) [9]
Investors have tended to reward two things here:
- Pricing power and mix in high-capacity nearline drives, and
- Cash generation, which matters because it supports buybacks/dividends while the cycle is favorable.
Capital returns: dividend growth and buybacks are part of the bull case
Western Digital has also been increasingly “shareholder return” oriented.
Dividend
The company announced a 25% increase in its quarterly cash dividend to $0.125 per share, paid Dec. 18, 2025, with an ex-dividend date of Dec. 4, 2025. [10]
Share repurchases
In May 2025, Western Digital’s board authorized a new $2.0 billion share repurchase program. [11]
More recently, Nasdaq.com commentary on WDC’s capital returns described significant buyback activity alongside dividends, including $553 million of share repurchases during the fiscal period referenced. [12]
For investors, the key question isn’t just “are they buying back stock?”—it’s whether buybacks are happening while:
- demand remains strong,
- supply remains constrained,
- and free cash flow is sustainably high.
If the AI-storage cycle stays tight, capital returns can amplify per-share earnings power. If the cycle turns, buybacks executed near peaks can look less attractive in hindsight.
Nasdaq-100 inclusion: a real catalyst, but mostly mechanical
One of the most important late-2025 technical catalysts for WDC was its addition to the Nasdaq-100.
Nasdaq coverage reported that the Nasdaq-100 annual reconstitution would add Western Digital (and others) effective prior to market open on Monday, Dec. 22, 2025. [13]
MarketWatch also noted that index inclusion can drive demand from passive funds tracking the benchmark. [14]
What investors should understand about the “index effect”:
- Short-term: index-tracking funds may need to buy shares, which can support demand around the effective date and shortly after.
- Medium-term: the effect can fade once portfolios are rebalanced, and price action returns to fundamentals (earnings, guidance, storage pricing, and hyperscaler capex).
So yes—Nasdaq-100 inclusion can matter. But the more durable driver is still whether Western Digital can deliver earnings, margins, and cash flow through 2026.
Analyst forecasts and price targets: upgrades cluster near $200, but not everyone is bullish
Analyst commentary has been notably active into year-end, with multiple firms lifting targets as the AI storage narrative strengthened.
An Investing.com analyst-ratings update reported that:
- Benchmark raised its price target to $200 (from $163) with a Buy rating, citing higher FY26–FY27 estimates and a strong HDD cycle backdrop. [15]
- The same report referenced BofA Securities raising its target to $197 (Buy), TD Cowen to $200 (Buy), and UBS setting $145 (Neutral). [16]
Meanwhile, Citi has also argued that HDD makers can be major AI beneficiaries and raised Western Digital’s target to $200 in commentary reported by Barron’s. [17]
What to take from this mix:
- The “bull cluster” has formed around $197–$200 targets from several major shops.
- There remains a visible “caution camp” (example: a Neutral stance with a materially lower target), reflecting the reality that storage is historically cyclical and can turn quickly.
A useful technical reference: WDC’s recent all-time high
If you follow price levels, TradingView data shows WDC’s all-time high around $188.77 on Dec. 11, 2025. [18]
With shares near $181 today, that prior peak can act as a psychological level for traders—especially in thin year-end volume. (This is not predictive on its own, but it’s commonly watched.)
Other recent company developments investors may have missed
Not every headline moves the stock immediately, but some items shape the longer-term narrative around technology and governance:
- Quantum computing exposure: Qolab announced a strategic investment from Western Digital, aiming to combine WD’s manufacturing/nanofabrication expertise with quantum hardware development. [19]
- Accounting leadership: Western Digital filed an SEC Form 8-K noting the appointment of Brad Feller as Senior VP and Chief Accounting Officer effective Nov. 14, 2025. [20]
These items likely aren’t the reason WDC is green today—but they add color to how the company is positioning itself and managing its organization during a high-profile cycle.
Key risks investors should weigh before buying or chasing WDC
Even with bullish analysts and AI enthusiasm, Western Digital carries real risks that can matter more than usual after a large run:
- Cycle risk / demand normalization
AI infrastructure spending is strong, but storage demand can still wobble if hyperscalers slow deployments, optimize utilization, or renegotiate procurement. - Pricing and supply dynamics can flip
The bull case often assumes constrained supply and rational pricing. If capacity ramps faster than expected, margins can compress. - Competition and substitution
SSDs keep improving, and while HDDs remain cost-effective for bulk storage, the mix shift over time is a strategic pressure point (even if HDD retains a large role in nearline). - Volatility and year-end liquidity
Today’s market is a reminder: volume is light, and price can move quickly. AP described trading at roughly about a third of typical activity in today’s post-holiday session. [21]
What to know before the next session
Because the market is open right now, the immediate focus is the final minutes into the 4 p.m. ET close—but many readers will see this after hours. Here’s what matters either way:
If you’re watching into today’s close (Dec. 26)
- Thin liquidity can distort the close: a modest order imbalance can move the stock more than usual.
- Check the closing price vs. $180–$185 area: WDC has been trading around this zone recently, and it may influence near-term sentiment.
If you’re reading after the close or over the weekend
- Next regular session:Monday, Dec. 29, 2025 (unless your broker flags an extraordinary closure).
- Expect more “window dressing” and positioning: year-end flows can support index-heavy names and recent winners, but reversals can be sharp once liquidity returns in early January. Reuters’ Week Ahead coverage notes the broader market is near record highs and investors are watching key macro developments into year-end. [22]
Calendar items to watch
- Next earnings date is not fully consistent across calendars. Third-party trackers show different estimates (some point to late January; others to early February). Nasdaq’s earnings page shows an algorithmic estimate around early February. [23]
- For the most reliable updates, investors typically monitor the company’s Investor Relations conference call / events page, which lists official earnings calls once announced. [24]
The bottom line on Western Digital stock heading into 2026
Western Digital’s late-2025 setup is unusually clear:
- The bull case leans on AI-driven data growth, continued cloud demand, and a storage supply environment that supports margins—backed by strong recent earnings and confident guidance. [25]
- The technical tailwinds include Nasdaq-100 inclusion and year-end flows, which can support demand but may be temporary. [26]
- The bear case is classic for storage: the cycle turns, pricing normalizes, and a stock that already had a huge year can re-rate quickly.
If you’re considering WDC at these levels, the most practical “next-step” diligence is to track (1) any updates on hyperscaler storage demand, (2) HDD supply tightness and pricing commentary, and (3) whether management’s guidance continues to prove conservative.
References
1. apnews.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.westerndigital.com, 5. www.reuters.com, 6. www.wsj.com, 7. www.westerndigital.com, 8. www.westerndigital.com, 9. www.reuters.com, 10. www.westerndigital.com, 11. www.westerndigital.com, 12. www.nasdaq.com, 13. www.nasdaq.com, 14. www.marketwatch.com, 15. www.investing.com, 16. www.investing.com, 17. www.barrons.com, 18. www.tradingview.com, 19. qolab.ai, 20. www.sec.gov, 21. apnews.com, 22. www.reuters.com, 23. www.nasdaq.com, 24. investor.wdc.com, 25. www.westerndigital.com, 26. www.nasdaq.com
