Reviewed listing: NASDAQ:WDC · Analysis dated Oct 27, 2026
It has not been confirmed whether the basis of this analysis still holds today. Read it as a dated earlier assessment; it does not establish a current buying opportunity.
How does the company make money?
Western Digital develops and sells hard drives that store large amounts of data. The company earns most of its revenue from sales to cloud data centers, computer manufacturers, and other customers.
What supports the business?
In the first quarter of fiscal year 2027, revenue rose about 55 percent from the prior-year quarter to 4.38 billion U.S. dollars. Hard drives for cloud data centers were particularly in demand.
What could improve?
Cloud revenue rose 54 percent in the latest quarter because more storage capacity was sold and sales prices per unit of storage were higher. If demand for large hard drives continues, the business can keep growing; this is not certain.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
At 356.13 US dollars per share, the price looks expensive: the roughly calculated market capitalization of 133 billion US dollars is about 46 times annual earnings after excluding a one-time, non-cash valuation gain. Even a strong company is not attractive at every price.
What is the main risk?
2026, 89 percent of revenue came from cloud customers, and ten customers accounted for 73 percent combined. If large customers expand their data centers less or cut orders, revenue and earnings may decline significantly.
What is the overall assessment?
Western Digital is growing strongly and generating good profits, but its high concentration of a few large cloud customers makes the business vulnerable to investment cuts. Combined with the demanding price, this is not enough for a compelling opportunity assessment at present.
Continue exploring this stock in your account
A free Marqora account gives you the detailed analysis with further evidence and lets you compare and save stocks. Your selected stock is kept when you sign in or register.
Open the full analysis in a free account →
Already have an account? Sign in