Western Digital's Lagging Data Storage Growth Rate Doesn't Mean Demand is Weak
Dow Jones
1 hour ago
0931 GMT - Western Digital's growth in data storage capacity was below its long-term target of over 25% in the fiscal fourth quarter, but the lag isn't a sign of falling demand, JPMorgan analysts write. Growth will continue to be muted into the fiscal first quarter of 2027, the analysts say. However, demand for data storage remains strong thanks to the increasing need for artificial-intelligence inference, AI agents and physical AI, they say. Customers want to sign long-term contracts with the U.S. data storage company, supporting the analysts' demand outlook. Western Digital is also expanding gross margin, they say. Shares tumble 15% premarket.
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