Bernstein Doubles Western Digital Price Target to $340, Sees 24% CAGR
Bernstein raised Western Digital’s rating to Outperform and doubled its price target to $340 from $170, noting a 21% share pullback as a buying opportunity. The firm forecasts 24% combined revenue CAGR through 2030 and highlights zero HDD demand impact from Google’s TurboQuant algorithm.
1. Bernstein Upgrades to Outperform
The firm upgraded Western Digital from Market Perform to Outperform and raised its price target to $340 from $170, arguing that a 21% share pullback has created a disconnect from fundamentals. Shares rose 2.3% in premarket trading following the upgrade.
2. TurboQuant Algorithm Impact
Google’s TurboQuant compression algorithm targets only KV cache used in AI inference, leaving hard disk drive demand unaffected and imposing negligible impact on NAND flash memory. The analysis underscores zero impact to HDD demand and dismisses fears that drove the recent sell-off.
3. Sector Outlook and Technology Roadmap
The broker now expects combined revenue for Western Digital and Seagate to grow at a 24% compound annual rate through fiscal 2030, supported by 24% bits growth and stable pricing. It highlights ePMR technology extending legacy drives by up to two years, while HAMR ramp-up is projected to start in 2027 at around 5% of nearline exabytes shipped.