Why JPMorgan Is Bullish on Western Digital (WDC): Near-Line Demand and Strong Execution

JPMorgan reiterated its Overweight rating and $57.00 price target on Western Digital Corp. (NASDAQ:WDC), underscoring the stock's momentum—up 10.7% in the past week—as well as its solid position in cloud and hyperscale storage markets.

Cloud & Hyperscale Spending to Drive Near-Term Growth

• Tariff Resilience: WDC's deep engagement with cloud and hyperscaler customers insulates it from trade-cost headwinds.

• Order Visibility: Secured orders from two major cloud providers extend revenue visibility into H1 2026.

• Revenue Mix: While enterprise, client, channel, and retail segments account for just 10-15% of $15.6 B in annual sales, robust demand from hyperscalers underpins the core HDD business.

Product Roadmap Fuels Confidence

• High-Capacity Drives: Successful shipments of 26 TB CMR and 32 TB ultra-SMR models.

• Next-Gen Launches: On track to release 28 TB CMR and 36 TB ultra-SMR in H2 2025, with customer qualifications slated for early 2026.

• HAMR Transition: Progressing on heat-assisted magnetic recording drives, with positive customer feedback and confident ramp timelines.

Analyst Sentiment & Price Targets

Momentum in analyst estimates underscores growing optimism: 16 brokers have recently revised WDC's earnings forecasts higher, reflecting the strength of the storage upcycle. To compare price-target updates across the street, tap into the Price Target Summary API, which aggregates live target revisions and recommendation changes for Western Digital and its peers:
Explore WDC's Price-Target Summary

Risks and What to Watch

1. End-Market Diversification: Monitor enterprise and retail segment performance if cloud demand moderates.

2. Supply Chain Disruptions: Any delays in HAMR production or component shortages could affect near-line drive availability.

3. Competitive Dynamics: Watch for shifts in pricing or capacity from other HDD and emerging SSD competitors.

With cloud and hyperscale spending expected to remain strong—and a clear roadmap for higher-capacity and HAMR drives—JPMorgan's Overweight call on WDC highlights both durable demand drivers and disciplined product execution.