WDC stock sits 6.6% below $600 after Q3 FY26 revenue surged 45.47% YoY and gross margins topped 50%.
Western Digital (NASDAQ:WDC) closed within 6.6% of its $600 price target after reporting a 45.47% year-over-year revenue increase and gross margins exceeding 50% for the first time. CEO Irving Tan highlighted HDDs as the cost-efficient storage backbone for AI workloads, including training and inference data.
Shares have rallied 227.02% year-to-date and 911.87% over the past year, driven by strong institutional ownership and a 40TB drive ramp. However, valuation concerns and a beta of 2.2 have triggered profit-taking, with insiders selling in 155 recent transactions. Morningstar noted most AI-related stocks lack durable competitive advantages.
The primary risk to reaching $600 remains a potential hyperscaler capex pause, though recent momentum has pushed the stock 10.01% higher in the past week.