Western Digital Target Raised to $257 as AI Demand Remains Strong
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy STX?
Source: Benzinga
- Target Price Increase: Bank of America analyst raised Western Digital's target price from $197 to $257, implying a 16% upside from current levels, reflecting increased confidence in revenue growth and margin expansion.
- Shipping Volume Expectations: Western Digital is expected to ship over 200 exabytes per quarter by 2026, supported by AI, cloud, and storage-intensive enterprise workloads, indicating strong market demand and a stable pricing environment.
- Customer Orders Locked: The company has secured orders from five key customers covering all of 2026, with some extending visibility into 2027, highlighting significant revenue growth potential in the coming years.
- Margin Improvement: Gross margins are projected to rise quarterly, reaching about 50% by 2026, which will further enhance the company's profitability and competitive position in the market.
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Analyst Views on STX
Wall Street analysts forecast STX stock price to fall
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 423.120
Low
150.00
Averages
310.39
High
465.00
Current: 423.120
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
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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