Core Insights - Western Digital Corporation (WDC) is a significant player in the data storage industry, manufacturing hard drives and solid-state drives, competing with firms like Seagate, Micron, Lam Research, Applied Materials, and Broadcom [1] Financial Performance - WDC has a Return on Invested Capital (ROIC) of 26.96% and a Weighted Average Cost of Capital (WACC) of 12.22%, resulting in a ROIC to WACC ratio of 2.21, indicating efficient capital utilization [2][6] - Seagate Technology Holdings (STX) has a higher ROIC of 35.65% and a lower WACC of 11.13%, leading to a ROIC to WACC ratio of 3.20, suggesting more effective capital utilization compared to WDC [3][6] - Lam Research Corporation (LRCX) also achieves a ROIC to WACC ratio of 3.20, with a ROIC of 38.61% and a WACC of 12.07%, outperforming WDC [3][6] - Micron Technology (MU) has a ROIC of 16.28% and a WACC of 22.09%, resulting in a ROIC to WACC ratio of 0.74, indicating less effective capital utilization compared to WDC [4][6] - Applied Materials (AMAT) and Broadcom (AVGO) have ROIC to WACC ratios of 1.93 and 1.75, respectively, showing varying levels of capital efficiency [4][5] Comparative Analysis - Overall, while WDC demonstrates strong capital utilization, Seagate and Lam Research outperform it in terms of the ROIC to WACC ratio, highlighting the importance of evaluating both metrics for understanding financial health and capital efficiency [5][6]

'All Boats Are Rising' in Data and Memory, Says Western Digital Finance Chief - 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 Finance Chief. Just Look at the Stocks.By [Nate Wo ...

Core Insights - The company is focusing on enhancing its internal laser capabilities and expanding UltraSMR adoption through new JBOD platforms, which provide higher storage density and improved performance for customers [1][2] - There is a strong demand for higher-density storage solutions driven by the growth of AI and cloud technologies, with the company working closely with hyperscale customers to meet their needs [3][4] - The company has secured long-term agreements with key customers, indicating strong trust and confidence in its ability to meet exabyte storage requirements [5][19] Financial Performance - In Q2 fiscal 2026, the company reported revenue of $3 billion, a 25% increase year-over-year, and earnings per share of $2.13, exceeding guidance [7][8] - Cloud revenue accounted for 89% of total revenue, reaching $2.7 billion, up 28% year-over-year, while client and consumer segments also showed growth [8] - Gross margin improved to 46.1%, reflecting a shift towards higher capacity drives and effective cost control [8][9] Product Development and Innovation - The company shipped over 3.5 million units of its latest ePMR products, with capacities up to 32 terabytes, demonstrating strong customer adoption [2][7] - The qualification of HAMR and next-generation ePMR products is underway, with expectations for these innovations to enhance capacity and reduce costs [6][30] - The company is also investing in quantum hardware design through a partnership with Qolab, aiming to advance nanofabrication processes [6] Customer Engagement and Market Trends - The company has established robust commercial agreements with top customers, indicating a strategic focus on long-term relationships and predictable pricing [5][19] - The demand for storage solutions is expected to grow significantly as AI capabilities expand, with the company positioned to benefit from this trend [3][36] - The mix of UltraSMR drives is increasing, which is beneficial for both customer needs and the company's profitability [25][26] Future Outlook - The company anticipates revenue of approximately $3.2 billion for Q3 fiscal 2026, reflecting a year-over-year growth of around 40% [11] - Gross margin is expected to be between 47% and 48%, with operating expenses projected to remain stable [11][12] - The company is committed to continuing its disciplined approach to free cash flow and capital returns, aiming for long-term value creation for shareholders [12]

Core Insights - Western Digital Corporation (WDC) reported strong financial results for the second quarter of fiscal 2026, with non-GAAP earnings of $2.13 per share, exceeding estimates and showing significant year-over-year growth of 78% [1][9] - The company generated $3.02 billion in revenue, a 25% increase year-over-year, driven by robust demand in data centers and high-capacity hard disk drives (HDDs) [2][9] Financial Performance - Revenue from the Cloud end market, which constitutes 89% of total revenues, rose 28% year-over-year to $2.7 billion, reflecting strong demand for higher-capacity nearline products [6] - Non-GAAP gross margin improved to 46.1%, up 770 basis points year-over-year, supported by a transition to higher-capacity drives and effective cost management [10] - Non-GAAP operating income reached $1.02 billion, marking a 72% increase year-over-year, with margins expanding to 33.8% [11] Operational Highlights - WDC shipped over 3.5 million latest-generation ePMR drives, supporting capacities of up to 26TB CMR and 32TB UltraSMR, indicating strong customer adoption [4] - The company shipped a total of 215 exabytes to customers, a 22% increase year-over-year [4] Cash Flow and Shareholder Returns - WDC generated $745 million in cash from operations, with free cash flow amounting to $653 million, up 95% year-over-year [13] - The company repurchased approximately 3.8 million shares for $615 million and paid $48 million in dividends, returning over 100% of its free cash flow to shareholders [14] Future Outlook - For the fiscal third quarter, WDC anticipates continued growth, projecting non-GAAP revenues of $3.2 billion, a 40% increase year-over-year, and non-GAAP earnings of $2.30 per share [15] - The company expects non-GAAP gross margin to be in the range of 47-48% and operating expenses between $380 million and $390 million [16]

Core Insights - Jim Cramer has discussed Western Digital Corporation (NASDAQ:WDC) multiple times, highlighting its strong market performance and recent share price increases [1] - Despite the positive momentum, Cramer cautioned that Western Digital may not be the ideal stock to hold, linking its performance to a current shortage in the computer memory storage sector [2] - Analysts, including Rosenblatt, have raised Western Digital's share price target significantly from $165 to $270, maintaining a Buy rating due to factors like heat-assisted devices and strong order demand [1] Group 1 - Western Digital Corporation's shares are performing well in the market, but Cramer warns against investing in the stock [1] - The company is experiencing a shortage that is affecting its ability to meet demand, which is a key factor in its stock performance [2] - Cramer noted the relationship between Western Digital and NVIDIA, suggesting that both cannot experience upward momentum simultaneously [2] Group 2 - Analysts are optimistic about Western Digital's future, citing technological advancements and strong order flow as reasons for the increased price target [1] - The discussion around Western Digital also reflects broader trends in the computer memory storage industry, particularly related to supply shortages [2] - There is a belief that while Western Digital has potential, other AI stocks may offer better returns with lower risk [2]

Group 1 - The article provides a market analysis of SanDisk Corporation, focusing on its performance and investment potential [1] - Key financial metrics and trends are highlighted, indicating the company's growth trajectory and market position [1] - The analysis includes comparisons with industry peers, showcasing SanDisk's competitive advantages and challenges [1] Group 2 - The report discusses recent developments in the semiconductor industry, particularly in flash memory technology, which is crucial for SanDisk's operations [1] - Market demand for storage solutions is analyzed, with projections indicating a positive outlook for the sector [1] - The impact of global supply chain dynamics on SanDisk's production and pricing strategies is examined [1]

Market Movements - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.37%, and Nasdaq futures down 0.49% [1] - European indices show positive movement, with Germany's DAX up 1.04%, UK's FTSE 100 up 0.45%, France's CAC40 up 0.76%, and the Euro Stoxx 50 up 1.04% [2][3] - WTI crude oil is down 0.61% at $65.02 per barrel, while Brent crude oil is down 0.73% at $69.08 per barrel [3][4] Market News - Trump's nomination of Kevin Warsh for the Federal Reserve chair may face hurdles due to ongoing investigations, with some Republican senators indicating they will block nominations until legal issues are resolved [5] - The financial market perceives Warsh as a more hawkish candidate compared to current chair Powell, potentially leading to tighter monetary policies [5] - Gold and silver prices have seen significant declines, with gold dropping over 5% to $5,099 per ounce and silver down over 12% to $101.4 per ounce, raising concerns about the sustainability of recent price increases [6] - The temporary agreement between Trump and Senate Democrats aims to prevent a government shutdown, although further negotiations are ongoing [6] Investment Strategies - Bank of America indicates that global stock markets are flashing sell signals, with 89% of MSCI stock index prices above their 50-day and 200-day moving averages, surpassing the 88% threshold considered a sell signal [7] - Jeff Gundlach, known as the "new bond king," advises avoiding the US market due to high inflation and a weakening dollar, recommending a 30%-40% allocation to non-US stocks, particularly emerging markets [8] Company News - Apple reported record Q1 earnings of $143.8 billion, a 16% year-over-year increase, driven by a 23% increase in iPhone revenue to $85.3 billion, with significant growth in the Greater China region [9] - Apple CEO Tim Cook announced a partnership with Google to develop a more personalized Siri, while also warning of supply constraints due to 3nm chip production limitations [10] - Sandisk's Q2 revenue is projected to grow 61.2% to $3.03 billion, exceeding market expectations, with a strong performance in data center and consumer segments [11] - Western Digital reported a 25% increase in revenue to $3.02 billion, with net profit surging 296%, driven by AI infrastructure demand [12] - KLA Corporation's Q2 revenue grew 7.2% to $3.3 billion, benefiting from AI infrastructure expansion, but concerns about valuation risks have emerged [13] - Visa's Q1 adjusted earnings were $3.17 per share, a 15% increase, with total payment volume reaching $3.87 trillion, exceeding expectations [14] - ExxonMobil's Q4 adjusted net profit was $1.71 per share, driven by increased oil production and refining margins, while Chevron's Q4 adjusted earnings were $1.52 per share, with plans for production growth [15][16] - Coterra Energy and Devon Energy are reportedly in talks for a potential merger, which could be one of the largest oil and gas deals in recent years [17]

Core Insights - Western Digital's gross margin surged to 46.1%, with incremental gross margin expectations reaching 75% due to price increases and cost reductions [2][4][35] - CEO Irving Tan announced that 2026 production capacity is sold out, with long-term agreements signed with three of the top five customers extending to 2027-2028 [4][10][12] - The demand for HDDs is expected to grow structurally driven by AI inference applications, which generate vast amounts of new data that require low-cost storage [2][18][20] Financial Performance - In Q2 of FY2026, Western Digital reported revenue of $3.02 billion and adjusted EPS of $2.13, both exceeding market expectations [3][4] - Net profit for the quarter reached $1.84 billion, or $4.73 per share, marking a 210% increase from $594 million ($1.27 per share) in the same quarter last year [4][35] - The company delivered 215 exabytes of data, a 22% year-over-year increase, including over 3.5 million units of the latest generation ePMR drives [33][34] Margin and Cost Dynamics - The gross margin improvement reflects a shift towards high-capacity drives and strict cost control across manufacturing and supply chains [35] - CFO Kris Sennesael confirmed that the incremental margin is around 75%, driven by a 2-3% increase in average selling price per terabyte and a 10% year-over-year decrease in manufacturing costs per terabyte [7][8][43] Long-term Agreements and Customer Relationships - Western Digital has secured all firm purchase orders for 2026 from its top seven customers and signed long-term agreements with three of the top five customers, indicating strong customer trust and recognition of value [10][12][46] - The long-term agreements include both pricing and quantity terms, reflecting a strategic approach to managing customer relationships in a tight supply environment [13][63] Technology and Market Trends - The company is accelerating the customer validation timeline for HAMR (Heat-Assisted Magnetic Recording) technology by six months due to supply pressures [17][56] - The transition from AI model training to inference applications is expected to create significant storage demand, benefiting HDDs as data centers return large amounts of inference data to HDDs [18][20][59] Future Outlook - For Q3 FY2026, Western Digital expects revenue of $3.2 billion, reflecting approximately 40% year-over-year growth, with gross margin projected between 47% and 48% [38] - The company continues to focus on supporting customer needs for exabyte-scale storage while completing the certification and release of next-generation ePMR and HAMR drives [30][38]

每经记者｜岳楚鹏 每经编辑｜段炼 兰素英 ⑥ 【Q2业绩大超预期，闪迪涨超20%】当地时间1月29日， 闪迪2026财年Q2财报显示，得益于AI存储需求的激增，闪迪当季营收30.3亿美元，同比增长 61.2%，高于26.9亿美元的普遍预期；每股收益为5.15美元，而市场普遍预期为3.54美元。调整后毛利率为51.1%，远强于42%的预期。截至发稿，闪迪上 涨20.9%。 ⑦ 【特朗普宣布美联储主席提名人选】1月30日，据新华社报道，美国总统特朗普30日提名美联储前理事凯文·沃什为下任美联储主席，这一提名还需获得 参议院批准。 ⑧ 【游戏驿站正准备收购一家大型上市公司】当地时间1月29日，据媒体报道，游戏驿站首席执行官表示，正瞄准一家大型上市公司进行收购，目标是将 市值提升至1000亿美元。截至发稿，游戏驿站上涨0.13%。 ⑨ 北京时间1月30日21:30，美国12月PPI月率公布。 （免责声明：本文内容与数据仅供参考，不构成投资建议，使用前请核实。据此操作，风险自担。） ① 【三大期指齐跌】道指期货跌0.81%、标普500指数期货跌0.87%、纳指期货跌1.09%。 ② 【黄金股大跌，黄金一度跌破5000美 ...

④ 【苹果iPhone销售创历史新高，在华收入增近38%】当地时间1月29日，苹果2026财年Q1财报显示， 营收同比增长16%，iPhone销售收入同比增23%，iPhone销量创历史新高。苹果在大中华区录得营收 255.3亿美元，同比增长37.9%，扭转了上一财季同比下降3.6%的势头。截至发稿，苹果下跌0.2%。 ① 【三大期指齐跌】道指期货跌0.81%、标普500指数期货跌0.87%、纳指期货跌1.09%。 ② 【黄金股大跌，黄金一度跌破5000美元/盎司】黄金股盘前大跌，黄金日内一度跌破5000美元/盎司。 截至发稿，现货黄金下跌7.96%，现货白银下跌12.79%。科尔黛伦矿业跌约10%，哈莫尼黄金跌约7%， 泛美白银跌约9%。 ③ 【芯片股普跌】芯片股盘前普跌。截至发稿，英伟达下跌1.83%，英特尔下跌2.53%，AMD下跌 2.86%。 免责声明：本文内容与数据仅供参考，不构成投资建议，使用前核实。据此操作，风险自担。 ⑤ 【2026年产能已售罄，西部数据跌超5%】当地时间1月29日，西部数据2026财年Q2财报显示，当季 营收达到30.2亿美元，调整后每股收益2.13美元，双双超市场预期。净 ...