Western Digital Corporation (WDC) Up 5.8% — Should I Add This Name to the Portfolio Now?
Key Points
Western Digital Corporation (WDC) extended its bullish run in the latest session, with the stock advancing 5.85% to close at $254.94 on the NASDAQ. That move represents a strong single-day gain of $14.09 from the prior close of $240.85, underscoring firm upside momentum. The session’s climb pushed shares above their recent $250.44 high from late January 2026, placing the stock in fresh high ground and signaling that buyers remain firmly in control. Trading has been marked by a clear upward bias in price action, reinforcing the view that Western Digital is gaining ground and attracting sustained interest at higher levels.
Volume came in at 4,454,997 shares, running below the 90-day average of 9,091,452. Even with lighter-than-usual turnover, the stock’s strong advance and breakout to new highs point to persistent demand rather than a one-off spike. In the context of its technology hardware and solutions peers such as Arista Networks (ANET), Dell Technologies (DELL), and Keysight Technologies (KEYS), Western Digital’s latest move stands out as particularly strong, with the stock surging while much of the group has experienced more measured price action. Overall, the combination of a solid percentage gain, a meaningful dollar advance, and price action pushing through prior resistance reflects a robust, bullish trend that continues to build on Western Digital’s recent strength.
Why Western Digital Corporation Price is Moving Higher
Western Digital Corporation (WDC) is climbing as investor enthusiasm builds around a strong fundamental and news-driven story. The stock recently set a new 52-week high at $250.44 and remains elevated as the market prices in robust expectations for the upcoming Q2 fiscal 2026 earnings release on Jan. 29. Consensus calls for EPS of $1.94 and revenue of about $2.9 billion, implying roughly 20% year-over-year top-line growth, following a prior quarter in which Western Digital delivered a 27.4% revenue increase and beat earnings estimates. That acceleration, supported by a solid profit margin near the mid-20% range, is reinforcing the view that AI-driven data center demand and high-capacity storage are powering a sustained recovery in the business.
Analyst activity is amplifying the bullish sentiment. The stock advanced further after Cantor Fitzgerald lifted its price target to $300 and reiterated an Overweight stance, while UBS recently raised its target to $230. These upward revisions, combined with a Moderate Buy consensus, signal growing confidence that Western Digital’s earnings trajectory and cash generation can support higher valuations. The company’s Innovation Day on Feb. 3 is another clear catalyst, with investors looking for updates on high-capacity drive technology and HAMR progress that could extend its competitive position. Against a backdrop of healthy EPS of $6.84, rising dividends and strong demand trends across the broader technology hardware space, Western Digital is benefiting from momentum that goes beyond short-term trading and reflects improving long-term growth expectations relative to sector peers such as Arista Networks, Dell Technologies, and Keysight Technologies.
What is the Western Digital Corporation Rating - Should I Buy?
Weiss Ratings assigns WDC a C rating. Current recommendation is Hold. This places Western Digital Corporation in the middle of the pack from a risk/reward standpoint, but with several noteworthy positives that may appeal to investors looking for exposure to the Information Technology space without taking on excessive company-specific risk.
The most compelling aspect of WDC’s profile is the Excellent Growth Index, backed by revenue growth of 27.40% and a profit margin of 25.45%. That growth is being converted efficiently, as shown by the Good Efficiency Index and a return on equity of 29.71%. These metrics indicate that when Western Digital invests in the business, it has historically generated attractive returns. The Good Total Return Index further shows that, over time, shareholders have been reasonably rewarded relative to the risks taken.
At the same time, the C (Hold) rating signals that these strengths are balanced by meaningful risk factors. The Weak Volatility Index points to a bumpier ride for shareholders, with price swings that can be uncomfortable for conservative investors, while the Weak Dividend Index indicates that income is not a core part of the story. The forward P/E of 35.20 also implies the market is already pricing in a fair amount of future growth.
Compared with peers such as Arista Networks, Inc. (ANET, C+), Dell Technologies Inc. (DELL, C+), and Keysight Technologies, Inc. (KEYS, C), Western Digital sits slightly behind the top-rated names but remains competitive within its group. Overall, the C rating and Hold recommendation capture a balanced outlook: meaningful upside potential grounded in strong growth and efficiency, offset by volatility and limited dividend support.
About Western Digital Corporation
Western Digital Corporation (WDC) is a leading global provider of data storage technologies and solutions within the Information Technology sector, specializing in technology hardware and equipment. The company designs, manufactures, and markets a broad portfolio of storage devices and platforms that underpin data infrastructure for consumer, client, and enterprise applications. Its offerings span hard disk drives (HDDs), solid-state drives (SSDs), embedded flash solutions, and data center systems, serving markets from personal computing and gaming to hyperscale cloud, enterprise servers, and edge devices. Western Digital’s well-known brands, including Western Digital, WD, SanDisk, and others, help it reach a wide range of end users and original equipment manufacturers.
A core strength of Western Digital is its vertically integrated flash and HDD capabilities, which allow it to innovate across multiple storage technologies and form factors. In flash storage, the company develops NAND-based solutions used in smartphones, PCs, data centers, automotive systems, and industrial applications. In the HDD space, it provides high-capacity drives optimized for data-intensive workloads such as cloud storage, video surveillance, and large-scale content repositories. Western Digital’s engineering expertise, intellectual property portfolio, and long-standing relationships with major OEMs and cloud providers help support its competitive position in the global storage market. As data creation and consumption expand across artificial intelligence, cloud computing, and connected devices, the company’s broad technology base and system-level solutions position it as a key enabler of modern digital infrastructure.
Investor Outlook
With a C (Hold) Weiss Rating, Western Digital Corporation (WDC) appears positioned for potential continued gains if it can build on recent momentum while managing risk. Investors may want to watch how the stock behaves around recent highs, as well as broader demand trends in data storage and AI-driven infrastructure that could support future performance and potentially influence any rating changes. See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.
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