/Western%20Digital%20Corp_%20external%20harddisk-by%20charnsitr%20via%20Shutterstock.jpg)
With a market cap of $20.6 billion, San Jose, California-based Western Digital Corporation (WDC) is one of the largest producers of data storage devices and solutions worldwide. The company designs, develops, and markets a wide range of hard disk drives (HDDs) and solid-state drives (SSDs) for applications in personal computing, gaming, consumer electronics, and enterprise systems.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Western Digital fits right into that category. Through its acquisition of SanDisk, Western Digital expanded into flash-based storage technologies, offering innovative solutions for mobile, automotive, IoT, and industrial applications. Its products, marketed under the Western Digital, SanDisk, and WD brands, are compatible with major platforms like iOS, Android, and Windows, catering to both consumer and enterprise markets globally.
However, the data storage company dipped 26.9% from its 52-week high of $81.55, reached in June. Over the past three months, shares of WDC have dropped 10.7%, which lags behind the iShares Future Cloud 5G and Tech ETF's (IDAT) rise of 6.4% during the same period.
In the longer term, WDC has gained 13.8% on a YTD basis, underperforming IDAT’s 17.6% gain. Moreover, shares of Western Digital have rallied 20.7% over the past 52 weeks, compared to IDAT’s 21.2% return over the same time frame.
Despite fluctuations in the last few months, WDC stock has fallen below its 50-day and 200-day moving averages since mid-December.
Shares of WDC surged 4.7% following its Q1 2025 earnings release on Oct. 24 due to its strong adjusted EPS of $1.78, surpassing expectations and marking a significant recovery from a loss in the prior year. Strong revenue growth of 49% year-over-year to $4.1 billion, driven by robust demand in the Cloud end market, highlighted the company’s focus on high-growth segments like enterprise SSDs and nearline HDDs. Non-GAAP gross margin improved significantly to 38.5%, reflecting better pricing, disciplined cost management, and a favorable product mix. The positive fiscal Q2 outlook, with revenue guidance of $4.2 billion - $4.4 billion and projected EPS of $1.75 - $2.05, further bolstered investor confidence.
In comparison with its rival, Seagate Technology Holdings plc (STX) has lagged behind WDC, with a 3.5% rise on a YTD basis and an 8% increase over the past 52 weeks.
Due to the stock’s outperformance relative to the industry peers, analysts are bullish about its prospects. WDC has a consensus rating of “Strong Buy” from the 21 analysts covering the stock, and it is currently trading below the mean price target of $91.11.
