Hard-disk drives are critical infrastructure for artificial-intelligence workloads, analysts from Evercore ISI and Western Digital Corp. said [1, 2].
This shift in storage demand is significant because generative AI models require massive datasets and training storage. While high-speed memory is often highlighted, high-capacity hard-disk drives (HDDs) provide the necessary foundation for the vast amounts of data these models process [1, 5].
Evercore ISI raised its price target on Western Digital to $575 from $410 [2]. Analysts said the market has not yet fully priced this AI-driven demand into the company's valuation, suggesting the stock remains underappreciated despite recent growth [2, 3].
Western Digital shares have seen substantial gains over the last year. Some reports indicate the stock is up roughly 945% over the past 52 weeks [3]. Current trading prices for shares are around $404 [4].
There are conflicting reports regarding the company's year-to-date performance. One source said that shares have surged more than 200% year-to-date [3], while another reports an increase of 134% [4].
Industry analysts said that the rally for Western Digital is not over yet. This optimism is tied to the expectation that the company could double its earnings as AI storage demand continues to manifest in pricing power [3, 5].
“Hard-disk drives are critical infrastructure for artificial-intelligence workloads”
The reliance on HDDs for AI highlights a critical bottleneck in data center infrastructure. While flash storage is faster, the sheer volume of data required for training large language models makes high-capacity magnetic storage economically and technically indispensable, positioning legacy hardware providers as essential partners in the AI ecosystem.
