Western Digital Corporation (WDC)

Over the past six months, Western Digital Corp.'s stock price has experienced significant positive momentum, largely driven by robust demand related to artificial intelligence (AI) and cloud infrastructure. Western Digital reported strong growth and profitability, exceeding analyst expectations, driven by rising AI-related demand and rapid adoption of new high-capacity drives. The company surpassed revenue and gross margin guidance, fueled by strong demand in the data storage sector from cloud providers, leading to a stock surge. Shares surged after the company introduced Ultrastar Data60 and Data102 platforms, designed for AI and high-performance computing markets, offering higher storage density and reduced power consumption. The inclusion in Nasdaq-100 Index also contributed to boosting the stock price. Western Digital increased its dividend by 25% to $0.125 per share.

Traditional demand seasonality for Western Digital's products has largely diminished because approximately 90% of the company's revenue is now cloud-driven. Demand is more closely tied to the specific programs of hyperscale customers, including new data center deployments and their refresh cycles, rather than conventional seasonal patterns. The company has reported improved visibility into customer plans, with firm purchase orders or long-term agreements from top hyperscale customers covering future fiscal years.

Western Digital Corporation is a global leader in data storage technologies and solutions, specializing in the design, manufacturing, and marketing of hard drives. The company's major products include internal and external hard disk drives (HDDs), solid-state drives (SSDs), flash memory products, and comprehensive data center solutions. These products are marketed under the Western Digital and WD brands, and also SanDisk Professional, serving a diverse customer base that includes cloud service providers, computer manufacturers, and original equipment manufacturers (OEMs).

Western Digital Corp. maintains a significant global presence, with operations spanning four primary regions: the United States, China, the Rest of Asia, and Europe, the Middle East, and Africa (EMEA). The company's net sales are geographically distributed, with America accounting for 48.3%, Asia for 35.6%, and Europe/Middle East/Africa for 16.1%. Its headquarters are located in San Jose, California, U.S. Western Digital also has major research and development facilities, manufacturing plants, and sales offices strategically located worldwide, including Shanghai, China, and Penang, Malaysia.

In the past year, Western Digital's brand reputation has been positively influenced by its strong performance and strategic positioning in high-growth markets. The company has garnered positive sentiment due to its role in supporting AI and cloud computing. The rapid adoption of its ePMR and UltraSMR drives and strong customer relationships with hyperscale cloud providers have further bolstered its reputation for innovation and reliability. A significant corporate event in the past year was the spin-off of its flash memory business as SanDisk Corporation in February 2025.

Western Digital Corp. has a diverse ownership structure, primarily dominated by institutional investors. Approximately 61.22% to 85.2% of the company's stock is held by institutional owners. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., Fmr Llc, Bank Of America Corp /de/, State Street Corp and JPMorgan Chase & Co. Individual investors and public companies also hold portions of the stock.