Western Digital (WDC) trades at $380.71, down 32.4% over three months from $563.14, despite beating earnings five straight times and posting fiscal Q4 revenue of $3.75 billion, up 43.8%. The selloff was partly driven by a Nikkei report that Toshiba plans to invest about ¥60 billion ($380 million) to double hard-disk-drive production capacity by fiscal 2027, challenging the supply discipline that supports HDD pricing. Gross margin rose from 43.9% to 54.4% across fiscal 2026, guidance for the current quarter is 55–56%, and customers have signed long-term agreements reaching 2029, 2030 and 2031. The average analyst price target is $668.50 (75.6% upside), while the stock is still up 121.24% year to date. The article says the bullish case depends on long-term contract pricing and margins holding, while Toshiba's added capacity could push down pricing per terabyte.
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