Western Digital Corporation (NASDAQ:WDC) shares are trading higher on Monday. The company announced the opening of its expanded System Integration and Test (SIT) Lab.
The lab, spanning a 25,600-square-foot facility, is designed to accelerate customer adoption and deliver faster time-to-value.
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The new lab addresses growing AI storage demands by enabling quicker, more predictable qualification of Western Digital's high-capacity HDDs.
Also Read: Western Digital Stock Rises As Analyst Sees Upside Ahead
The facility combines research, development, and global operations with a mini data center environment for real-world testing and validation, ensuring customers get advanced storage solutions when they need them.
Ahmed Shihab, Chief Product Officer at Western Digital, said, "The AI revolution has made one thing clear: storage is the foundation of the AI data-driven economy — and HDDs remain its backbone. With nearly 80% of cloud data stored on HDDs, they are critical for enabling the collection, preparation, retention and long-term accessibility of data. By delivering the best storage economics at scale, HDDs make the AI era possible."
Analyst Ratings
Two analysts raised their price forecasts on Western Digital stock.
Wells Fargo has maintained an overweight rating on Western Digital and raised its price forecast to $150. Meanwhile, Evercore ISI Group has also kept an outperform rating on the company, increasing its price forecast to $190.
Investors can gain exposure to the stock via the EA Series Trust Castellan Targeted Equity ETF (BATS:CTEF) and ARS Focused Opportunity Strategy ETF (NASDAQ:AFOS).
Price Action
Western Digital shares were up 0.99% at $116.56 at the time of publication on Monday, according to Benzinga Pro data.
Western Digital's market cap of $40.54 billion positions it as a significant player in the technology hardware sector, particularly in data storage solutions.
The stock's 52-week range, spanning from $28.83 to $137.40, indicates substantial volatility, reflecting broader trends in the tech industry and shifting consumer demand for storage solutions.
Despite a modest dividend yield of 0.35%, the elevated P/E ratio of nearly 26 suggests investor expectations for growth, albeit amid a competitive landscape.
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