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Western Digital Corporation (WDC), headquartered in San Jose, California, develops, manufactures, and sells data storage devices and solutions. With a market cap of $15.5 billion, the company's products include hard drives, solid-state drives, and home entertainment and networking products.
Shares of this leading supplier of data storage solutions have underperformed the broader market over the past year. WDC has declined 15.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.2%. However, in 2025, WDC stock is up marginally, surpassing the SPX’s 3.9% decline on a YTD basis.
Narrowing the focus, WDC’s underperformance looks less pronounced compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 6.4% over the past year. However, WDC’s marginal gains on a YTD basis outshine the ETF’s 7.3% dip over the same time frame.
Western Digital's stock took a hit after China imposed a 34% tariff on all U.S. imports, particularly affecting U.S. chipmakers. These new tariffs could potentially hurt profit margins and market share for Western Digital. The Trump administration's possible additional regulatory actions against the sector raised further concerns. Despite being exempt from recent tariffs, worries about targeted restrictions remain. Furthermore, stiff competition and reduced demand for flash storage in consumer devices have added to the challenges facing WDC.
On Apr. 30, WDC shares closed up by 8% after reporting its Q3 results. Its adjusted EPS came in at $1.36, up 15.3% from the last quarter. The company’s revenue was $2.29 billion, topping Wall Street forecasts of $2.25 billion. For Q4, WDC expects its adjusted EPS to range from $1.25 to $1.65, and expects revenue in the range of $2.3 billion to $2.6 billion.
For the current fiscal year, ending in June, analysts expect WDC’s EPS to grow 472.7% to $4.10 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 20 analysts covering WDC stock, the consensus is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, and two “Holds.”
This configuration is more bullish than a month ago, with 15 analysts suggesting a “Strong Buy.”
On May 1, TD Cowen analyst Krish Sankar kept a “Buy” rating on WDC and lowered the price target to $58, implying a potential upside of 28.8% from current levels.
The mean price target of $59.35 represents a 31.8% premium to WDC’s current price levels. The Street-high price target of $100 suggests an ambitious upside potential of 122.1%.
