Seeking Alpha
03 Jun 2026, 04:47 UTC · 1h ago
Western Digital: Strong Margins, AI Story Intact
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Seeking Alpha
03 Jun 2026, 04:47 UTC · 1h ago
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Story key points
4 claims · impact-rated
Western Digital reported a 46% YoY revenue increase to $3.34B and a 50.5% gross margin for Q3. — Strong top-line growth paired with high margins indicates high pricing power and operational efficiency in the storage market.
+0.80The company provided a bullish EPS growth outlook for FY26–28. — Forward-looking guidance for multi-year growth typically drives institutional accumulation and higher valuation multiples.
+0.60Western Digital's growth is being driven by robust demand from the cloud sector. — Confirmation of sustained AI/cloud infrastructure spending provides a macroeconomic tailwind for the semiconductor and storage industry.
+0.50The stock has a forward PEG ratio of 0.86x and a fair value target of $555 based on FY28 normalized EPS. — A PEG below 1.0 suggests the stock is undervalued relative to its growth potential, attracting value-oriented investors.
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Ticker attribution
Model heads
The company reported strong Q3 revenue growth, exceptional margin expansion, and a bullish long-term EPS outlook.
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