WDC
Western Digital Corporation

Western Digital CorporationWDC

Technology · Computer Hardware
332.00USD
-6.86%
Oct 17, 2026
WDC overview ready
Key Supplier of High-Capacity Nearline HDD Storage for AI Data Centers
Direct beneficiary and focused supplier of high-capacity nearline HDD storage to cloud and hyperscale data-center customers.
Strong narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Data-Center Capacity Storage — pure play.
Price structure is giving way
Longer-term context reads extended trend, with a near-term setup of pullback recovery.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably….
Unremarkable fundamentals
Primary risk
Technological shifts reducing HDD demand.
Market Oct 16Filing Jul 3Price action Aug 9

Conviction Level

Theme Heat has no canonical measurement for this company — a research-profile dimension, not an input to this score.

NarrativeHeat—ThemeHeat—PriceAction1.4Valuation4.6CompanyPosition7.3BusinessQuality5.5
Price
Loading price history…

Price Action

Price structure is giving way
Longer-term context reads extended trend, with a near-term setup of pullback recovery.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$119.7B
Avg Volume (60D)
7.6M
60 sessions
Revenue Growth YoY
+35.7%
FY2026 vs FY2025
Gross Margin
+48.9%
Trailing twelve months
Operating Margin
+34.5%
Trailing twelve months
Free Cash Flow Yield
+2.9%
P/E
12.7x
EV / EBITDA
24.7x
EV / Sales
9.2x
Market metrics as of Oct 16, 2026
Financial results for the period ended Jul 3, 2026
Filed balance-sheet data as of Jul 3, 2026

Fundamentals & Valuation

All three valuation perspectives agree this company is fair.
Western Digital Corporation has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Direct beneficiary and focused supplier of high-capacity nearline HDD storage to cloud and hyperscale data-center customers. The exposure is adjacent rather than pure-play: the company sells into the same demand, alongside a broader business. WDC is a genuine, high-directness AI-infrastructure beneficiary.
Opportunity
High opportunity
Hyperscaler and enterprise AI deployments require economical, exabyte-scale persistent storage for training data, checkpoints, inference data, logs, governance retention, and broader data-lake growth; high-capacity nearline HDDs remain the principal cost-efficient capacity tier.
Key risk
Technological shifts reducing HDD demand.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Data-Center Capacity Storage, with strong fit.
WDC is a genuine, high-directness AI-infrastructure beneficiary.
Narrative HeatUnavailable
Theme HeatUnavailable

Business & Markets

Technology · Computer Hardware
What they do

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions, primarily based on hard disk drive technology, operating globally through direct sales and distribution channels.

How it earns

The company generates revenue primarily through transactional sales of hardware products and storage solutions.

Products & services
Internal hard disk drives
Data center drives
External drives
Portable drives
Network-attached storage (NAS) devices
Storage accessories
Customers & end markets
Computer manufacturers
Data center operators
Retail consumers
Business offices
Market position

Western Digital is a leader in the data storage hardware industry, particularly in hard disk drive technology.

Demand drivers
Medium cyclicality

Demand for storage products is influenced by technology investment cycles and broader IT spending trends.