Dow Hits Record High as Cramer Backs Alphabet Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy WDC?
Source: CNBC
- Market Dynamics: The Dow briefly reached a record high on Tuesday as investors rotated out of tech stocks into consumer goods like PepsiCo and Procter & Gamble, indicating a bifurcated market that could influence future investment strategies.
- Alphabet Outlook: Jim Cramer reiterated that investors should buy Alphabet ahead of its earnings report, expecting the parent company of Google to post “terrific” earnings, which could drive its stock price higher and reflect differing market sentiments towards tech stocks.
- Qnity Investment Opportunity: Cramer labeled Qnity as a stock “you have to own,” predicting significant upside despite its price being just over $100, as he believes it is undervalued compared to peers like Sandisk and Western Digital, particularly due to a supply shortage situation.
- Rapid Recap: Other stocks mentioned by Cramer at the end of the video included PepsiCo, Palantir, Merck, Pfizer, PayPal, and Disney, highlighting a demand for diversified investments that may impact portfolio construction.
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Analyst Views on WDC
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
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 270.230
Low
135.00
Averages
189.74
High
250.00
Current: 270.230
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.
Western Digital Plans to Launch 100TB HDDs by 2029
- Future HDD Capacity: Western Digital (WDC) announced today its plan to launch 100TB HAMR HDDs by 2029, while its 40TB UltraSMR ePMR HDD is currently undergoing customer qualifications and is expected to become the highest-capacity hard disk drive on the market when production ramps up in the second half of 2026, significantly enhancing the company's competitive position in the storage market.
- Technological Innovation Advantage: The company employs a dual-path strategy that leverages the common architecture of HAMR and ePMR technologies to enhance manufacturing efficiency and product transition flexibility, allowing hyperscale customers to adopt technology on their own timelines, ensuring continuous capacity growth while minimizing infrastructure disruption risks.
- Performance Enhancement Technologies: Western Digital has introduced High Bandwidth Drive Technology, enabling simultaneous reading and writing from multiple heads, with bandwidth potentially increasing to twice that of conventional HDDs and scalable up to eight times, alongside Dual Pivot Technology that enhances IO performance within a 3.5-inch drive, further boosting product competitiveness.
- Market Expansion Plans: The company is expanding its Platforms business segment to provide services for mid-scale customers, with plans to launch an intelligent software layer via an open API in 2027, aimed at helping companies at 200+ petabyte scale achieve storage efficiency, thereby broadening its potential customer base and enhancing market share.
See More
Western Digital Showcases AI-Driven Growth at Innovation Day
- AI-Driven Growth: Western Digital emphasized the application of its AI technologies during Innovation Day, showcasing how intelligent solutions can enhance data storage and management efficiency, thereby strengthening its competitive position in the market.
- Positive Market Reaction: The company's stock rose due to the optimistic outlook presented at Innovation Day, reflecting investor confidence in its future growth potential, which may attract more capital inflows.
- Technology Innovation Showcase: During the event, Western Digital unveiled several new technologies, particularly breakthroughs in data analytics and processing speeds, indicating the company's technological leadership in the industry.
- Clear Strategic Direction: Through this event, Western Digital clarified its future development strategy, focusing on the integration of AI and data solutions to meet the growing market demand and drive long-term growth.
See More
Mixed US Stock Performance with Tech Stocks Under Pressure
- Divergent Market Performance: The S&P 500 Index fell by 0.35% today while the Dow Jones Industrial Average rose by 0.13%, indicating a split in market sentiment, particularly as weakness in tech stocks weighed on overall performance.
- Tech Stock Retreat: Following the release of an automation tool for lawyers by AI firm Anthropic, data service and software stocks retreated, with Thomson Reuters down over 17% and Intuit and FactSet both down more than 9%, reflecting a decline in investor confidence in the tech sector.
- Mining Stocks Surge: Gold prices rose by over 6% and silver prices soared by more than 13%, driving mining stocks higher, with Freeport McMoRan and Hecla Mining both up over 6%, indicating a rebound in investor demand for precious metals.
- Economic Data Impact: Despite strong US manufacturing data, the 10-year T-note yield climbed to a 1.5-week high of 4.30%, dampening expectations for further Fed rate cuts and leading to cautious investor sentiment that pressured some stocks.
See More
Dow Hits Record High as Cramer Backs Alphabet Ahead of Earnings
- Market Dynamics: The Dow briefly reached a record high on Tuesday as investors rotated out of tech stocks into consumer goods like PepsiCo and Procter & Gamble, indicating a bifurcated market that could influence future investment strategies.
- Alphabet Outlook: Jim Cramer reiterated that investors should buy Alphabet ahead of its earnings report, expecting the parent company of Google to post “terrific” earnings, which could drive its stock price higher and reflect differing market sentiments towards tech stocks.
- Qnity Investment Opportunity: Cramer labeled Qnity as a stock “you have to own,” predicting significant upside despite its price being just over $100, as he believes it is undervalued compared to peers like Sandisk and Western Digital, particularly due to a supply shortage situation.
- Rapid Recap: Other stocks mentioned by Cramer at the end of the video included PepsiCo, Palantir, Merck, Pfizer, PayPal, and Disney, highlighting a demand for diversified investments that may impact portfolio construction.
See More
Mixed Performance in US Stocks as Tech Sector Shows Divergence
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
See More
Western Digital Authorizes Additional $4B Stock Buyback
- Buyback Program Expansion: Western Digital's board has authorized an additional $4 billion for its stock buyback program, indicating confidence in future market performance, while approximately $484 million remained under the previous authorization as of February 2, showcasing the company's flexibility in capital allocation.
- Capital Allocation Strategy: CEO Irving Tan emphasized that the company's capital allocation strategy balances reinvestment in the business, debt reduction, and capital returns to shareholders, aiming to enhance shareholder value and support long-term growth.
- Market Condition Dependency: Western Digital noted that the amount and timing of share repurchases will depend on market conditions and other corporate considerations, indicating the company's ability to remain agile in a dynamic market environment.
- Positive Stock Reaction: Following the buyback announcement, Western Digital's shares jumped approximately 5% in premarket trading on Tuesday, reflecting investor optimism regarding the company's buyback plan and future growth prospects.
See More
Western Digital Plans to Launch 100TB HDDs by 2029
- Future HDD Capacity: Western Digital (WDC) announced today its plan to launch 100TB HAMR HDDs by 2029, while its 40TB UltraSMR ePMR HDD is currently undergoing customer qualifications and is expected to become the highest-capacity hard disk drive on the market when production ramps up in the second half of 2026, significantly enhancing the company's competitive position in the storage market.
- Technological Innovation Advantage: The company employs a dual-path strategy that leverages the common architecture of HAMR and ePMR technologies to enhance manufacturing efficiency and product transition flexibility, allowing hyperscale customers to adopt technology on their own timelines, ensuring continuous capacity growth while minimizing infrastructure disruption risks.
- Performance Enhancement Technologies: Western Digital has introduced High Bandwidth Drive Technology, enabling simultaneous reading and writing from multiple heads, with bandwidth potentially increasing to twice that of conventional HDDs and scalable up to eight times, alongside Dual Pivot Technology that enhances IO performance within a 3.5-inch drive, further boosting product competitiveness.
- Market Expansion Plans: The company is expanding its Platforms business segment to provide services for mid-scale customers, with plans to launch an intelligent software layer via an open API in 2027, aimed at helping companies at 200+ petabyte scale achieve storage efficiency, thereby broadening its potential customer base and enhancing market share.
See More
Western Digital Showcases AI-Driven Growth at Innovation Day
- AI-Driven Growth: Western Digital emphasized the application of its AI technologies during Innovation Day, showcasing how intelligent solutions can enhance data storage and management efficiency, thereby strengthening its competitive position in the market.
- Positive Market Reaction: The company's stock rose due to the optimistic outlook presented at Innovation Day, reflecting investor confidence in its future growth potential, which may attract more capital inflows.
- Technology Innovation Showcase: During the event, Western Digital unveiled several new technologies, particularly breakthroughs in data analytics and processing speeds, indicating the company's technological leadership in the industry.
- Clear Strategic Direction: Through this event, Western Digital clarified its future development strategy, focusing on the integration of AI and data solutions to meet the growing market demand and drive long-term growth.
See More
Mixed US Stock Performance with Tech Stocks Under Pressure
- Divergent Market Performance: The S&P 500 Index fell by 0.35% today while the Dow Jones Industrial Average rose by 0.13%, indicating a split in market sentiment, particularly as weakness in tech stocks weighed on overall performance.
- Tech Stock Retreat: Following the release of an automation tool for lawyers by AI firm Anthropic, data service and software stocks retreated, with Thomson Reuters down over 17% and Intuit and FactSet both down more than 9%, reflecting a decline in investor confidence in the tech sector.
- Mining Stocks Surge: Gold prices rose by over 6% and silver prices soared by more than 13%, driving mining stocks higher, with Freeport McMoRan and Hecla Mining both up over 6%, indicating a rebound in investor demand for precious metals.
- Economic Data Impact: Despite strong US manufacturing data, the 10-year T-note yield climbed to a 1.5-week high of 4.30%, dampening expectations for further Fed rate cuts and leading to cautious investor sentiment that pressured some stocks.
See More
Dow Hits Record High as Cramer Backs Alphabet Ahead of Earnings
- Market Dynamics: The Dow briefly reached a record high on Tuesday as investors rotated out of tech stocks into consumer goods like PepsiCo and Procter & Gamble, indicating a bifurcated market that could influence future investment strategies.
- Alphabet Outlook: Jim Cramer reiterated that investors should buy Alphabet ahead of its earnings report, expecting the parent company of Google to post “terrific” earnings, which could drive its stock price higher and reflect differing market sentiments towards tech stocks.
- Qnity Investment Opportunity: Cramer labeled Qnity as a stock “you have to own,” predicting significant upside despite its price being just over $100, as he believes it is undervalued compared to peers like Sandisk and Western Digital, particularly due to a supply shortage situation.
- Rapid Recap: Other stocks mentioned by Cramer at the end of the video included PepsiCo, Palantir, Merck, Pfizer, PayPal, and Disney, highlighting a demand for diversified investments that may impact portfolio construction.
See More
Mixed Performance in US Stocks as Tech Sector Shows Divergence
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
See More
Western Digital Authorizes Additional $4B Stock Buyback
- Buyback Program Expansion: Western Digital's board has authorized an additional $4 billion for its stock buyback program, indicating confidence in future market performance, while approximately $484 million remained under the previous authorization as of February 2, showcasing the company's flexibility in capital allocation.
- Capital Allocation Strategy: CEO Irving Tan emphasized that the company's capital allocation strategy balances reinvestment in the business, debt reduction, and capital returns to shareholders, aiming to enhance shareholder value and support long-term growth.
- Market Condition Dependency: Western Digital noted that the amount and timing of share repurchases will depend on market conditions and other corporate considerations, indicating the company's ability to remain agile in a dynamic market environment.
- Positive Stock Reaction: Following the buyback announcement, Western Digital's shares jumped approximately 5% in premarket trading on Tuesday, reflecting investor optimism regarding the company's buyback plan and future growth prospects.
See More
