
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital is poised for strong growth as its revenue from cloud services is expected to increase significantly, reaching 88% of total revenue by FY25, up from 75% in FY22. The company is also well-positioned to capitalize on the rapidly expanding nearline hard disk drive market, projected to grow at a 14% compound annual growth rate (CAGR), driven in part by advancements in artificial intelligence, which could contribute approximately $6 billion to this segment's growth by 2026. Furthermore, the introduction of a quarterly dividend beginning in Q4 FY25, anticipated to increase over time, reflects a commitment to returning value to shareholders.
Bears say
Western Digital's stock outlook is negatively influenced by the potential for oversupply and pricing weakness, which could lead to lower profitability in a highly cyclical industry. The company's management has set expectations for gross margins that failed to meet investor hopes of 40%+, contributing to recent share sell-offs. Furthermore, despite a focus on profitability over market share, the significant reliance on demand from data centers and the broader structural vulnerabilities in the HDD market raise concerns about sustained earnings power.
This aggregate rating is based on analysts' research of Western Digital and is not a guaranteed prediction by Public.com or investment advice.
Western Digital (WDC) Analyst Forecast & Price Prediction
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