Western Digital(US:WDC) Sou Hu Cai Jing·2026-02-15 14:25Core Insights - Western Digital's HDD production capacity has been sold out for 2026, as confirmed by CEO Irving Tan, indicating strong demand in the current market where memory and storage prices are rising significantly [1][3] - The company has secured new formal purchase orders with its top seven customers, including long-term agreements extending to 2028, which are likely from major tech companies investing in data centers [3] - Western Digital is focusing on developing products that meet enterprise customer needs, capitalizing on the rapid construction of large-scale data centers [3][4] Financial Performance - Cloud business revenue constitutes 89% of total revenue, while consumer business revenue is only 5%, highlighting a significant disparity in focus and profitability between the two segments [4] - The shift in focus towards B2B operations has led to a neglect of consumer-level products, as the company prioritizes the more lucrative data center market [4] Market Dynamics - The demand for high-capacity HDDs has surged due to the needs of data centers, reversing the trend where HDDs were losing ground to SSDs before the AI boom [6] - This shift in demand dynamics has resulted in a challenging environment for ordinary consumers, who may face higher prices and limited availability of HDDs [6]