Western Digital (WDC) shares surged 3.5% to $181.08 on high volume, reflecting a 24.8% gain in the past four weeks. The increase is driven by a cyclical recovery, strong AI demand, improved pricing power, and better cash flow visibility.

Western Digital benefits from the rapid growth in AI infrastructure, particularly in high-capacity HDDs. The company’s exposure to hyperscalers and cloud providers prioritizing higher-density drives is boosting pricing power and margins.

Analysts expect Western Digital to post quarterly earnings of $1.92 per share, up 8.5% year-over-year, with revenues of $2.91 billion, a 32% decline from last year. The consensus EPS estimate has remained unchanged, indicating potential future strength.

Quantum Corp. (QMCO), another stock in the same industry, saw a 1% increase to $7.32. Analysts expect QMCO to report -$0.45 EPS, up 44.4% from last year. Quantum Corp. currently holds a Zacks Rank of #3 (Hold) in the Computer-Storage Devices industry.

Read more at Nasdaq: Western Digital (WDC) Soars 3.5%: Is Further Upside Left in the Stock?