WDC Should I Buy
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Western Digital Corp (WDC) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, robust growth in AI-driven storage demand, positive analyst ratings, and multi-year contracts with major clients make it a compelling choice despite recent insider selling and short-term technical weakness.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), indicating a long-term uptrend. However, the MACD is below zero and negatively contracting, suggesting short-term weakness. RSI is neutral at 61.052, and the stock is trading near its pivot level of 275.126 with resistance at 300.388.
Revenue increased by 25.24% YoY in Q2 2026, with net income up 209.47% YoY.
Strong growth in AI-driven storage demand, with stock surging 970% in the past year.
Multi-year contracts secured with major clients.
$4 billion share buyback program announced.
Positive analyst ratings and price target increases, with multiple firms highlighting long-term growth potential.
Insider selling has increased significantly (16076.96% over the last month).
Short-term technical indicators like MACD and candlestick patterns suggest potential near-term downside.
No recent congress trading data or AI trading signals to confirm immediate entry.
In Q2 2026, Western Digital reported revenue growth of 25.24% YoY to $3.017 billion, net income growth of 209.47% YoY to $1.798 billion, and EPS growth of 196.32% YoY to $4.83. Gross margin improved significantly to 45.74%, up 29.28% YoY.
Analysts are broadly positive on WDC, with multiple firms raising price targets recently. BofA raised its target to $375, Mizuho to $340, and Citi to $335, all maintaining Buy or Outperform ratings. Analysts cite strong pricing trends, AI-driven demand, and long-term profitability as key drivers.
