Western Digital: Buy The Earnings Growth, Not Just The AI Story

Blake Winiecki 776 Followers Follow Summary Western Digital is now a pure-play HDD leader, capitalizing on surging data storage demand, especially from hyperscale cloud and AI-driven workloads. WDC delivered 44% YoY Q4 revenue growth and 22% exabyte shipment growth, with cloud customers accounting for 89% of Q4 revenue. Gross margin expanded to 54.1% in Q4 FY2026, with management guiding for 55%-56%, driven by high-capacity drives and strong operating leverage. WDC trades at a 19x P/E with 75% forecasted earnings growth, offering a discounted entry point; I reiterate my Buy rating. Yori Meirizan/iStock via Getty Images Western Digital ( WDC ) is a leading provider of hard disk drive (HDD) storage technology, supplying the infrastructure that allows companies to store the enormous and rapidly growing amount of data generated around the world. Following the February This article was written by Blake Winiecki 776 Followers Follow I am an investment author with passion for finance and global markets. I enjoy gearing toward economic analysis, specifically on a macro level. Through current and forward looking market trends, fundamental and technical analysis, my goal is to provide investors and readers with the tools and knowledge to make informed and confident investment decisions. I am always open to feedback and hope you enjoy my writing! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.