Why Western Digital (WDC) Is Benefiting From AI-Driven Storage Demand and Tight HDD Supply Conditions

Habib Ur Rehman

Sun, July 12, 2026 astatine 12:25 PM CDT 2 min read

Western Digital Corporation (NASDAQ:WDC) is 1 of the best performing AI stocks implicit the past 3 years, with a 3Y CAGR of 173%. On June 15, Morgan Stanley expert Erik Woodring maintained an Overweight standing and raised his terms people to $650 from $488. Woodring's thesis centered connected a widening hard-disk-drive shortage. He estimated request was increasing 40% to 50% annually against proviso maturation of 30% to 35%, with unreality enlargement and AI inference expanding retention requirements. Rising NAND flash prices besides marque high-capacity hard drives much economically charismatic for immoderate ample datasets, supporting much predictable pricing. Western Digital shares gained 16% that day, starring the S&P 500.

Copyright: andreykuzmin / 123RF Stock Photo

Bank of America reiterated Buy with a $732 people connected July 1. The durability of the thesis depends connected proviso subject and workload growth. If customers hold deployments, reuse existing capacity, oregon displacement their retention mix, tightness could ease. For now, expert attraction has moved from portion volumes toward pricing powerfulness and data-center request visibility.

Western Digital Corporation (NASDAQ:WDC) develops data-storage devices and platforms, with a superior absorption connected high-capacity hard disk drives utilized successful unreality information centers, endeavor systems, video applications, and user storage.

While we admit the hazard and imaginable of WDC arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and doing truthful wrong a shorter clip frame. If you are looking for an AI banal that is much promising than WDC and that has 10,000% upside potential, cheque retired our study astir the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

Disclosure: None. Follow Insider Monkey connected Google News.