Evercore ISI raises Western Digital’s target to $575, citing HDD market growth fueled by artificial intelligence infrastructure expansion.
Evercore ISI increased its price target for Western Digital Corp (NASDAQ:WDC) to $575 from $410, maintaining an Outperform rating. The firm highlighted WDC’s pivotal role in the artificial intelligence (AI) infrastructure buildout, particularly in the hard disk drive (HDD) market.
The HDD industry, often overlooked in AI discussions, is expected to see over 20% compound annual sales growth and more than 30% EPS growth in the medium term. Evercore projects Western Digital’s revenue growth to outpace exabyte expansion, with earnings growth exceeding revenue due to margin expansion and capital allocation efforts.
WDC shares have surged 180% year-to-date and over 900% in the past year. The revised target follows investor meetings with Western Digital’s management, reflecting a more optimistic growth outlook.