Shift in Hardware Sector: The stock market has seen a significant shift towards hardware, particularly in AI-related components, with companies like SanDisk and Western Digital experiencing notable stock price increases due to rising demand for data storage solutions.
Supply Chain Dynamics: The semiconductor manufacturing industry is facing a supply shock, leading to increased prices and a focus on high-bandwidth memory (HBM) production, which is essential for AI applications, while standard memory chip production is being deprioritized.
Financial Performance: SanDisk is projected to achieve substantial revenue growth, with earnings per share expected to rise significantly, while Western Digital is streamlining its operations to focus on flash memory, enhancing its market position.
Investment Opportunities: Analysts recommend investing in memory stocks, particularly those that are well-positioned to benefit from the growing demand for data storage in AI and other high-tech applications, as the market continues to evolve.
Wall Street analysts forecast WDC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WDC is 189.74 USD with a low forecast of 135.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast WDC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WDC is 189.74 USD with a low forecast of 135.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 241.900
Low
135.00
Averages
189.74
High
250.00
Current: 241.900
Low
135.00
Averages
189.74
High
250.00
UBS
upgrade
$145 -> $230
2026-01-20
New
Reason
UBS
Price Target
$145 -> $230
AI Analysis
2026-01-20
New
upgrade
Reason
UBS raised the firm's price target on Western Digital to $230 from $145. The December quarter is expected in line with guidance, with the March quarter slightly above the Street, supported by strong gross margins but limited near-term revenue upside due to constrained drive capacity, the analyst tells investors in a research note. Western Digital is likely to highlight fully booked capacity through 2027, with potential narrative shifts if external head sourcing adds incremental capacity, the firm says, adding that a down cycle is still modeled starting in early 2028, though timing may be pushed back.
Rosenblatt
Kevin Cassidy
Buy
upgrade
$165 -> $270
2026-01-20
New
Reason
Rosenblatt
Kevin Cassidy
Price Target
$165 -> $270
2026-01-20
New
upgrade
Buy
Reason
Rosenblatt analyst Kevin Cassidy raised the firm's price target on Western Digital to $270 from $165 and keeps a Buy rating on the shares. The firm upped the company's estimates citing increasing hard disk drive prices and demand. Western Digital's build-to-order strategy continues to benefit from good visibility and limited inventory builds, the analyst tells investors in a research note. Rosenblatt sees upside to the company's revenue and earnings estimates with a potential catalyst in HAMR technology drive approvals.
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BofA
Buy
maintain
$197 -> $257
2026-01-20
New
Reason
BofA
Price Target
$197 -> $257
2026-01-20
New
maintain
Buy
Reason
BofA raised the firm's price target on Western Digital to $257 from $197 and keeps a Buy rating on the shares. The firm expects Western Digital to report revenue, margins and EPS at the top of the guidance range when it reports fiscal Q2 results after market close on January 29, the analyst tells investors in a preview.
Citi
Asiya Merchant
Buy
maintain
$200 -> $280
2026-01-20
New
Reason
Citi
Asiya Merchant
Price Target
$200 -> $280
2026-01-20
New
maintain
Buy
Reason
Citi analyst Asiya Merchant raised the firm's price target on Western Digital to $280 from $200 and keeps a Buy rating on the shares. The firm adjusted targets in the technology hardware group as part of its 2026 outlook. Citi believes hyperscaler data center spending "remains robust," which is driving demand for power, storage, connectors, and fiber.
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.
