From Nasdaq: 2025-02-18 22:00:13

Western Digital (WDC) reported a successful Q2 2025 with record nearline shipments and strong UltraSMR technology adoption, leading to a 10% stock surge. Q2 revenue hit $4.3 billion, up 41% y-o-y, with Cloud revenue doubling. Gross margins rose to 35.4%, and EPS was $1.77. Separation of Flash and HDD businesses expected in Q3 2025.

WDC stock performance has been volatile, with 2021 returns at 18% and 2022 at -52%. Trefis High Quality Portfolio has outperformed, offering better returns with less risk. WDC’s valuation is $76 per share, 13% higher than current market price, with potential for growth due to AI demand and storage solutions.

Looking ahead, WDC expects Q3 2025 revenue between $3.75 billion to $3.95 billion, with gross margins of 31.5% to 33.5%. Flash business may see revenue decline, while HDD segment is expected to improve gross margins. Peers’ metrics can offer valuable comparisons for investors.

In terms of returns, WDC has seen a 4% increase in February 2025, a 29% rise since the start of 2024, and an 11% return from 2017-2025. Comparatively, the S&P 500 has had a 1% increase in February 2025, a 28% rise since the start of 2024, and a total return of 173% from 2017-2025.



Read more at Nasdaq: What’s Driving Western Digital Stock’s 10% Surge?