Core Insights - The surge in artificial intelligence (AI) infrastructure spending is benefiting not only pure-play AI companies but also those supporting its ecosystem, such as Western Digital (WDC) [1] - Western Digital's shares have increased approximately 127% this year due to strong demand for data storage solutions driven by AI adoption [2] - The company's revenue surged by 51% in fiscal 2025, with significant gross margin expansion and strong free cash flow generation [3] Company Performance - Western Digital's stock appears undervalued relative to its growth prospects, suggesting that the momentum in WDC stock may continue [4] - The demand for scalable and cost-efficient data storage is expected to remain high, particularly with the rise of large language models (LLMs) and agentic AI [5] - Shipments of Western Digital's latest high-capacity drives, including ePMR drives (up to 26 terabytes) and UltraSMR drives (up to 32 terabytes), more than doubled to 1.7 million units last quarter [6]