Core Insights - Western Digital has seen significant institutional investment, with 92.51% of its stock owned by institutional investors, indicating strong confidence in the company [1] - Analysts have raised their price targets for Western Digital, with estimates ranging from $163.00 to $335.00, reflecting a positive outlook on the stock [2] - The company reported strong quarterly earnings, with an EPS of $2.13, exceeding expectations, and a revenue of $3.02 billion, which is a 25.2% increase year-over-year [5][7] Institutional Investment - SYM FINANCIAL Corp acquired a new position valued at approximately $225,000 in the second quarter [1] - Nordea Investment Management AB increased its stake by 9.6%, now holding shares worth $1,938,000 after purchasing an additional 2,656 shares [1] - Resona Asset Management Co. Ltd. boosted its stake by 7.1%, owning shares valued at $7,594,000 after buying 7,913 additional shares [1] Analyst Ratings - Benchmark raised its price target from $115.00 to $163.00, maintaining a "buy" rating [2] - Wells Fargo set a target price of $335.00 with an "overweight" rating [2] - The consensus rating for Western Digital is "Moderate Buy" with an average target price of $244.95 [2] Insider Activity - CEO Irving Tan sold 20,000 shares at an average price of $150.69, totaling $3,013,800, reducing his ownership by 3.01% [3] - Insider Cynthia L. Tregillis sold 447 shares at an average price of $229.00, valued at $102,363, representing a 0.31% decrease in her position [3] - Over the last 90 days, insiders sold 26,816 shares valued at $4,116,148, with insiders owning 0.18% of the stock [3] Company Performance - Western Digital's stock opened at $250.23, with a market capitalization of $85.55 billion and a P/E ratio of 25.10 [4] - The company has a one-year low of $28.83 and a high of $285.42, indicating significant volatility [4] - Financial ratios include a debt-to-equity ratio of 0.42, a current ratio of 1.21, and a quick ratio of 0.94 [4] Earnings Report - The latest quarterly earnings report showed an EPS of $2.13, surpassing the consensus estimate of $1.93 by $0.20 [5] - Revenue for the quarter was $3.02 billion, exceeding expectations of $2.93 billion [5] - The return on equity was reported at 44.67% with a net margin of 35.52% [5] Dividend Announcement - Western Digital announced a quarterly dividend of $0.125 per share, with an annualized yield of 0.2% [8] - The ex-dividend date is set for March 5th, with a payout ratio of 5.02% [8]

'All Boats Are Rising' in Data and Memory, Says Western Digital's CFO - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# 'All Boats Are Rising' in Data and Memory, Says Western Digital's CFO. Just Look at the Stocks.By [Nate Wolf]ShareResize-- ...

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or similar derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of any affiliated organization [4].

Core Insights - José Muñoz, the first non-Korean leader of the automaker, aims to accelerate the establishment of factories in the U.S. [1] Company Strategy - The company is focusing on expanding its manufacturing footprint in the U.S. to enhance production capabilities [1]

Core Viewpoint - Western Digital reported strong financial results for Q2 FY26, with significant year-over-year and quarter-over-quarter growth in revenue and shipment capacity [1] Financial Performance - Revenue for Q2 FY26 reached $3.017 billion (approximately 21.012 billion RMB), representing a 25% year-over-year increase and a 7.06% quarter-over-quarter increase [1] - Total shipment capacity was 215EB, showing a year-over-year growth of 22.16% and a quarter-over-quarter growth of 5.39% [1] Customer Agreements - The company has signed procurement agreements with its top seven customers for the calendar year 2026, indicating that production capacity for the year is nearly sold out [1] - Agreements with two of the top five customers extend into the calendar year 2027, with one agreement even extending to 2028 [1] Pricing and Cost Trends - The average price per TB increased slightly by 2-3% compared to the previous quarter, while the cost per TB decreased by approximately 10% year-over-year [1] - UltraSMR technology has contributed to over half of the overall nearline HDD shipment capacity [1] Future Outlook - For Q3 FY26, Western Digital expects revenue to be in the range of $3.2 billion ± $100 million [1]

Core Insights - The company is experiencing significant demand driven by advancements in AI, particularly in model training and inference, which require increased storage capacity [2][3] - The company has been preparing for this demand surge over the past three to four quarters by innovating and delivering higher capacity drives [2][5] - Current product offerings have increased from 24 terabytes to 32 terabytes per drive, with plans for even higher capacity drives in the near future [5][6] Production and Capacity - The company is not adding production capacity in terms of unit output but is focusing on technological innovation to deliver higher capacity drives [4][5] - The emphasis on higher aerial density drives has contributed to margin expansion [5] Customer Base and Market Position - The company primarily serves hyperscale customers, as the majority of storage is shifting to the cloud due to the need for AI capabilities [8][9] - Engineering teams are closely aligned with the needs of hyperscale customers to meet their capacity and functionality requirements [9] Market Outlook - Demand for storage is projected to grow at a compounded annual growth rate of 25% over the next five years [10] - The company has secured long-term contracts with major customers, indicating strong future demand, with some agreements extending to the end of calendar year 2027 [10]

Core Insights - Sandisk's stock has surged by 1,600% following its spinoff from Western Digital, highlighting the potential for significant shareholder value creation through corporate breakups [1] Group 1: Company Performance - The performance of Sandisk's stock post-spinoff has been described as "incredible," indicating a strong market reaction and investor confidence in the company's future prospects [1] Group 2: Market Trends - The success of Sandisk's spinoff is drawing attention to a broader trend of corporate breakups that may unlock additional shareholder value across various companies [1]

Core Insights - Western Digital (WDC) has experienced a significant rally, reaching 52-week highs, driven by positive investor sentiment towards infrastructure spending for artificial intelligence [1] - The company is leveraging its upcoming Innovation Day event on February 3 to showcase its alignment with structural winners in the market, particularly in AI-related storage solutions [2] Company Overview - Western Digital is a leading provider of data storage solutions, offering high-capacity hard disk drives and flash storage for enterprise, cloud, and consumer applications, with a market capitalization of approximately $96 billion [3] - The stock has shown remarkable performance, trading at $279 after reaching an intraday high of $285.25, recovering from a low of around $30 over the past year [4] Financial Performance - The forward price-to-earnings ratio for Western Digital is currently at 47x, with a price-to-sales ratio of about 10x, indicating strong market confidence in the company's profitability [5] - The company boasts a return on equity near 31% and rapidly growing operating margins, reflecting its robust financial health [5]

Core Viewpoint - Western Digital Corp (NASDAQ:WDC) is experiencing strong financial growth and has a positive outlook, supported by a new price target set by Barclays analyst Tom O'Malley at $325, indicating a potential upside of 16.73% from its current price of $278.41 [1][6]. Financial Performance - In Q2 2026, Western Digital reported revenue of $3 billion, reflecting a 25% increase year-over-year [2][6]. - The company's earnings per share (EPS) reached $2.13, surpassing the high end of their guidance range [2][6]. Product Delivery and Growth - Western Digital delivered 215 exabytes of data storage, marking a 22% year-over-year growth [3][6]. - The shipment of over 3.5 million units of its latest EPMR products indicates strong customer confidence in the company's offerings [3]. Margin Improvement - The gross margin improved to 46.1%, an increase of 770 basis points, attributed to a focus on higher capacity drives and effective cost control measures [3]. Strategic Initiatives - The company has secured long-term agreements with major customers, enhancing visibility into future demand [4]. - Western Digital is advancing its Hammer and EPMR roadmaps and has begun qualifying next-generation products, positioning itself for continued growth and innovation [4]. Stock Performance - Currently, WDC's stock price is $278.41, with a slight decrease of 0.46% or -$1.29 [5]. - The stock has fluctuated between $268.35 and $285.42 today, with the highest price over the past year being $285.42 [5]. - The company has a market capitalization of approximately $95.44 billion and a trading volume of 15.21 million shares [5].

Core Viewpoint - Western Digital Corporation has demonstrated strong financial performance and growth potential in the data storage industry, leading to an upgrade in stock rating by UBS. Financial Performance - Revenue for the second quarter of 2026 reached $3 billion, marking a 25% increase from the previous year [2][6] - Earnings per share (EPS) stood at $2.13, exceeding the high end of the company's guidance range [3] - Gross margin improved significantly to 46.1%, an increase of 770 basis points from the previous year, attributed to a strategic shift towards higher capacity drives and effective cost management [4][6] Product and Market Position - The company delivered 215 exabytes, reflecting a 22% year-over-year growth, driven by strong demand for nearline drives [3] - Over 3.5 million units of the latest generation EPMR products were shipped, indicating robust customer confidence [3] - Western Digital is advancing its Hammer and EPMR roadmaps and has begun qualifying next-generation products, positioning itself for continued growth [5] Stock Performance - UBS upgraded Western Digital to a "Buy" rating, increasing the price target from $230 to $285 [2][6] - The stock is currently priced at $278.41, with a trading volume of 15.21 million shares [5] - The stock's highest price over the past year was $285.42, while the lowest was $28.83 [5]