Industry Overview - Global spending on AI-driven infrastructure is projected to reach $6.7 trillion by 2030, with $3.1 trillion specifically allocated for advanced chips and data center technology [1] - This surge in investment is driving unprecedented demand for high-capacity data storage solutions, significantly impacting providers in the sector [1] Company Focus - Western Digital Corporation (WDC) is strategically focusing on hard disk drives, positioning itself at the center of the growing global data boom [3] - Morgan Stanley has reiterated an "Outperform" rating for Western Digital, raising its price target to $171 due to the multi-trillion-dollar opportunities in AI infrastructure [2] Financial Performance - Western Digital reported revenue of $2.61 billion in its most recent earnings report, marking a 30% increase year-over-year [7] - The company achieved a quarterly EPS of $1.51, surpassing consensus estimates by $0.16, resulting in a positive surprise of 11.85% [7] - The company has a market valuation of $40.7 billion, trading at 18.15x trailing earnings and 17.80x forward earnings, which are lower than sector medians [6] Dividend Information - Western Digital has instituted a recurring dividend of $0.40 per share, with a forward yield of 0.37% [4] - The most recent quarterly payout was $0.10, with a payout ratio of 286.66%, indicating aggressive capital returns [4] Stock Performance - Shares of Western Digital have increased by 8% to $129.98 today, with a year-to-date increase of 188.45% and a 52-week increase of 157.64% [5]