"But zoom out, and the picture changes dramatically. The stock is up 31% over the past month and 63% year-to-date, riding a wave of AI storage demand that's reshaping the data center landscape. While the broader semiconductor sector, tracked by the VanEck Semiconductor ETF (NYSEARCA:SMH), gained 1.51% this week and 13% year-to-date, Western Digital's outperformance tells a specific story about who's winning in AI infrastructure."
"The week brought a flurry of analyst price target increases. Cantor Fitzgerald raised its target to $420 on February 6, citing improved growth and profitability expectations. Susquehanna followed with a boost to $285 on February 11. The timing wasn't random. Western Digital's Innovation Day on February 10 unveiled an aggressive AI-focused storage roadmap, including next-generation 40TB UltraSMR drives and plans for HDDs exceeding 100TB capacity by 2029."
Western Digital moved sideways this week, dipping 0.35% to close at $281.58 on February 13. The stock is up 31% over the past month and 63% year-to-date, driven by AI storage demand reshaping data centers. The VanEck Semiconductor ETF gained 1.51% this week and 13% year-to-date, but Western Digital has outperformed peers. Analysts raised price targets after an Innovation Day unveiling a roadmap that includes next-generation 40TB UltraSMR drives and plans for HDDs exceeding 100TB capacity by 2029. Cantor Fitzgerald and Susquehanna increased targets to $420 and $285 respectively. Twenty-one analysts rate the stock a buy or strong buy, with six holds and zero sells. Street earnings estimates for 2027 rose from $9.91 to $13.45 in 30 days, supporting higher price targets. The broader memory and storage sector is experiencing a supply squeeze driven by AI demand.
Read at 24/7 Wall St.
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