"Western Digital (NASDAQ:WDC) shares have surged 65% year-to-date as the company transformed from an overlooked storage provider into an AI infrastructure powerhouse. The stock has grown significantly as investors recognized the company's pivot from consumer storage to AI infrastructure, reflecting a complete business reinvention driven by insatiable demand from hyperscale data centers. The catalyst? Western Digital announced its entire 2026 HDD production capacity is 100% sold out, signaling unprecedented demand from hyperscale AI data centers."
"Reddit sentiment surged to very bullish levels as a viral post about the capacity sell-out generated 2,817 upvotes and 308 comments within hours ( view the discussion on Reddit). The tone is overwhelmingly optimistic, driven by three key factors: Western Digital sold out its entire 2026 production before the year is halfway done, signaling unprecedented demand visibility The company shifted from consumer-focused to enterprise-dominated, with AI hyperscalers driving the bulk of sales Long-term contracts through 2028 provide revenue predictability that traditional storage companies rarely achieve"
Western Digital shares have surged 65% year-to-date following a strategic pivot from consumer storage to AI infrastructure and enterprise sales. The company reported 100% sell-out of its 2026 HDD production capacity, with long-term supply agreements extending through 2028, creating unprecedented revenue visibility. Hyperscaler AI data centers now account for 89% of revenue while consumer sales represent about 5%. Retail investor sentiment on r/wallstreetbets reached 81 (very bullish) after a viral post that garnered 2,817 upvotes and 308 comments. Peer Seagate has also rallied, roughly tripling as the sector rapidly reprices around AI-driven storage demand.
#western-digital #ai-infrastructure #hdd-capacity-sell-out #hyperscale-data-centers #long-term-contracts
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