Western Digital stock climbed nearly 11% on January 28, 2026, after rival Seagate Technology reported double-digit revenue growth of 22% and a 76% surge in net income, both beating analyst forecasts. Investors extrapolated Seagate’s strong results—driven by surging demand for AI-optimized storage—to Western Digital’s outlook, pushing Western Digital’s share performance to its highest intraday level in six months. Analysts caution, however, that Western Digital’s own quarterly report, due next week, will provide the definitive read on its operational health.

Over the past year, Western Digital shares have soared approximately 400%, reflecting the company’s leadership in high-capacity hard disk drives (HDDs) and growing enterprise solid-state drive (SSD) deployments. The company commands roughly 62.8% of the global HDD market and participates in a SSD segment that collectively accounts for about 70% market share among major suppliers. Western Digital currently trades at about 35 times trailing earnings, compared to a 10-year median of 18 times, yet analysts contend that ongoing data-center build-outs and AI-driven storage demand justify a premium valuation. Consensus forecasts project roughly 35% annual EPS growth and 17% annual revenue growth over the next three years.

For its fiscal second quarter ending April 2026, Western Digital projects non-GAAP revenue of $2.9 billion, up 20% year-over-year, with data-center demand and high-capacity HDDs driving momentum. Management highlighted a shift toward higher-margin enterprise products and expects continued sequential increases in both EPS and revenue through fiscal 2026. Investors will key off any guidance updates on inventory levels, pricing trends per terabyte and contract renewals with hyperscale customers—factors critical to sustaining the company’s tight supply dynamics and margin expansion.