Long-Term Growth Potential of Western Digital and Micron Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Surging Market Demand: Western Digital's stock has skyrocketed 465% over the past year, including a 60% increase this year, while Micron Technology has seen a 313% rise, with a 35% gain year-to-date, indicating significant benefits from AI infrastructure investments and strong long-term growth potential.
- Industry Leadership: Both companies dominate their respective sectors, with Western Digital leading in hard disk storage and Micron in high-bandwidth memory chips, as demand for their products is expected to grow 24% and 15-fold by 2035, respectively, further solidifying their market positions.
- Valuation Advantage: Despite substantial stock price increases, Western Digital trades at a P/E ratio of just 25, below the S&P 500 average, with a five-year PEG ratio of about 0.9, highlighting its value investment appeal; Micron's forward P/E is only 11, reinforcing its relative affordability.
- Future Growth Outlook: Both companies have secured sales agreements for their production capabilities through 2026, and with their dominant market positions and the enormous growth potential in their addressable markets, they are well-positioned for continued strong growth in the future.
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Analyst Views on WDC
Wall Street analysts forecast WDC stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 284.100
Low
135.00
Averages
189.74
High
250.00
Current: 284.100
Low
135.00
Averages
189.74
High
250.00
About WDC
Western Digital Corporation is a developer, manufacturer and provider of data storage devices and solutions. It delivers hard disk drives (HDD) solutions for everyone from students, gamers, and home offices to enterprises and public clouds. The Company manufactures, markets, and sells data storage devices and solutions in the United States and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Its portfolio of technology and products addresses multiple end markets: Cloud, Client, and Consumer. Cloud is comprised primarily of products for public or private cloud environments and end customers. Through the Client end market, it provides its original equipment manufacturer (OEM) and channel customers a range of hard drive solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Consumer end market offers a range of retail and other end-user products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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