
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital's positive outlook is supported by a substantial anticipated growth in its revenue from cloud services, projected to reach 88% of total revenue by FY25, up from 75% in FY22. Additionally, the nearline HDD total addressable market (TAM) is expected to grow at a 14% compound annual growth rate (CAGR), driven in part by the burgeoning generative AI sector, contributing approximately $6 billion to market expansion by CY26. Furthermore, the company plans to initiate a quarterly dividend of $0.20 in Q4 FY25, indicating strong cash flow generation and a commitment to returning value to shareholders.
Bears say
Western Digital faces significant risks related to potential oversupply and pricing pressure, which may lead to lower profitability and suggest that normalized earnings power will remain stagnant. Additionally, the company's focus on prioritizing profit over market share could result in prolonged periods of undersupply, further affecting financial stability in the cyclical HDD market. Investors may be dissatisfied with the company's gross margin guidance, which has not met previously expected benchmarks, indicating challenges in meeting market expectations and sustaining growth.
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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