Western Digital Corporation (WDC), based in San Jose, California, holds a market cap of $20.6 billion. As a major player in the data storage industry, it produces a variety of hard disk drives (HDDs) and solid-state drives (SSDs) used in personal computing, gaming, and enterprise systems. The company’s product line, which includes offerings from its SanDisk acquisition, serves applications in mobile, automotive, IoT, and industrial sectors.
Current Market Performance and Comparison
Currently, Western Digital is classified as a “large-cap” stock due to its significant valuation. Recently, the stock has faced challenges, dropping 26.9% from a high of $81.55 in June. Over the past three months, shares have decreased by 10.7%, falling behind the iShares Future Cloud 5G and Tech ETF’s (IDAT) gains of 6.4% in the same timeframe.
Looking at the bigger picture, WDC has achieved a year-to-date growth of 13.8%, underperforming IDAT’s 17.6% increase. Over the past year, the stock has grown 20.7%, just shy of IDAT’s 21.2% return.
Recent Earnings Report Sparks Investor Optimism
Despite recent struggles, WDC shares surged by 4.7% after reporting its Q1 2025 earnings on October 24. This increase came on the heels of a strong adjusted EPS of $1.78, exceeding expectations and showing a remarkable turnaround from losses recorded the previous year. Revenue growth of 49% year-over-year to $4.1 billion was largely fueled by strong demand in the Cloud market. The company’s focus on high-growth areas like enterprise SSDs and nearline HDDs is paying off. Additionally, the non-GAAP gross margin improved to 38.5%, reflecting effective pricing strategies and cost management. For fiscal Q2, Western Digital projected revenue between $4.2 billion and $4.4 billion, with EPS expected between $1.75 and $2.05—further boosting investor confidence.
In contrast, rival Seagate Technology Holdings plc (STX) has lagged behind, only rising 3.5% year-to-date and 8% over the past year.
Analysts Bullish on Future Prospects
Given its strong performance relative to competitors, analysts have a positive outlook on WDC. The stock has garnered a consensus rating of “Strong Buy” from 21 analysts, currently trading below the mean price target of $91.11.
On the date of publication, Sohini Mondal did not hold any positions in the securities mentioned in this article. All information herein is for informational purposes only. For more details, please view the Barchart Disclosure Policy.
The views expressed here are the author’s own and do not necessarily reflect those of Nasdaq, Inc.
