"Bernstein's analysis suggests that the recent selloff creates an attractive entry point for investors, emphasizing that TurboQuant should have 'zero impact' on hard disk drive demand and 'negligible impact' on NAND demand."
"Western Digital's non-GAAP diluted EPS of $2.13 in Q2 FY2026 exceeded estimates, with a gross margin expansion of 770 basis points year-over-year, indicating strong operational performance."
"CEO Irving Tan highlighted that 'Western Digital's strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy,' showcasing the company's commitment to delivering high-capacity HDDs."
Bernstein upgraded Western Digital to Outperform, raising its price target to $340 from $170. The upgrade counters recent selloff fears triggered by Google's TurboQuant report, which suggested potential demand destruction in storage hardware. Bernstein argues that TurboQuant will have minimal impact on hard disk drive and NAND demand. Despite a 14.63% stock drop recently, Western Digital's fundamentals are strong, with significant earnings growth and a positive revenue outlook for Q3 FY2026, driven by AI demand.
Read at 24/7 Wall St.
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