Seeking Alpha
25 Oct 2026, 10:27 UTC · 1h ago
Western Digital: Cracks In Its AI Supercycle Are Worsening (Rating Downgrade)
Impact · against what's priced in
The downgrade to Western Digital is largely a confirmation of the market's existing skepticism regarding the sustainability of AI-driven growth. While the analyst highlights pricing leverage concerns, the current price already assumes a sharp deceleration in revenue and refuses to pay for margin expansion, leaving little room for a further catalyst.
- WDC−0.10
Already priced in
- The price assumes
A sharp deceleration from the current 35.7% revenue growth down to the 16.4% annual rate
The analyst's warning that volume must accelerate to offset normalizing revenue and fading pricing momentum aligns with the market's refusal to pay for growth above 16.4%.
What WDC's price assumes · Sep 11
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