Western Digital (WDC) stock has surged 280% this year, driven by AI-driven demand for storage solutions. Revenue increased 51% in fiscal 2025, and Q1 of fiscal 2026 saw revenue climb 27%. The company’s exposure to the expanding AI ecosystem and improving fundamentals suggests room for growth.

As AI adoption accelerates, data centers and cloud service providers are seeking high-capacity drives, benefiting Western Digital. The company’s ePMR products are in high demand, with shipments exceeding 2.2 million units. Investments in new technologies and automation are enhancing manufacturing efficiency to meet rising demand.

Western Digital secures solid orders from its largest customers, extending into 2026 and 2027, endorsing its technology roadmap. Transitioning to HAMR technology will expand storage density, with volume production expected in the first half of 2027. The company’s platforms division is also thriving, driven by growth in on-premise and cloud storage.

WDC’s stock is attractive with a forward P/E ratio of 25.9x. Analysts project a 48.3% EPS surge in fiscal 2026 and 50.3% in 2027, supporting a “Strong Buy” consensus rating. With earnings set for rapid expansion, reasonable valuation, and bullish outlook, WDC stock offers further upside potential for investors.

Read more at Yahoo Finance: Western Digital Stock Soars 280% This Year. Is WDC Worth Chasing Now?