Western Digital shares have more than quadrupled over the last 12 months, reflecting unprecedented demand for data center storage. This 400% gain outpaces nearly all peers in the memory and storage sector and underscores investors’ enthusiasm for the company’s exposure to AI-driven infrastructure buildouts.

Investors are paying over 35 times trailing earnings for Western Digital, compared with a ten-year median of around 18 times. Analysts nonetheless forecast roughly 35% annual EPS growth and 17% annual revenue growth over the next several years, driven by continued hyperscaler investments. That expectation has supported a re-rating that could push the multiple toward 50 times earnings if growth continues to surpass consensus.

In its most recent quarterly report, Western Digital delivered net income of approximately $1.2 billion and exceeded adjusted EPS consensus by nearly 13%, while revenue topped estimates by 3.4%. The company commands roughly 62.8% of the global hard-disk drive market and participates in about 70% of enterprise SSD capacity alongside major competitors, solidifying its position in both high-capacity and solid-state storage segments.

For fiscal Q2 2026, Western Digital projects non-GAAP revenue of $2.9 billion, a 20% year-over-year increase. Management attributes the growth to sustained data-center demand for high-capacity drives and anticipates further margin expansion as pricing per terabyte remains firm. Investors will be watching closely to see whether the company can maintain sequential revenue and EPS gains in the face of evolving supply dynamics.