
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital is poised for significant revenue growth, with projections indicating that its cloud business will increase to 88% of total revenue by FY25, up from 75% in FY22. The company is strategically positioned to benefit from the expansion of the nearline HDD total addressable market (TAM), which is expected to grow at a 14% compound annual growth rate (CAGR), fueled by the generative AI wave, contributing approximately $6 billion to the expansion from $13 billion in CY24 to $23 billion in CY26. Additionally, Western Digital plans to implement a quarterly dividend starting in Q4 FY25, with expectations for substantial growth in this area over the coming years, further enhancing its investment appeal.
Bears say
Western Digital's stock faces a negative outlook primarily due to concerns regarding potential oversupply and pricing weakness, which could lead to diminished profitability and challenge the company's ability to achieve normalized earnings power. Additionally, there are risks associated with cyclical market conditions, indicating that earnings may not improve significantly from prior levels, contrasting with investor expectations for higher gross margins. Furthermore, while the company is focused on managing supply to enhance profit margins, this strategy may lead to prolonged periods of undersupply and dissatisfaction among investors regarding growth targets.
This aggregate rating is based on analysts' research of Western Digital and is not a guaranteed prediction by Public.com or investment advice.
Western Digital (WDC) Analyst Forecast & Price Prediction
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