Situational Awareness LP exits its WDC position as the company reports record 50.5% non-GAAP gross margins in Q3 2026.
Situational Awareness LP has liquidated its entire stake in Western Digital Corporation (NASDAQ:WDC), which initially comprised 152,000 shares acquired in Q4 2025. The sale follows WDC’s historic Q3 2026 performance, where non-GAAP gross margins expanded 1,040 basis points year-over-year to 50.5%, the first time the company has surpassed the 50% threshold.
Western Digital, now a pure-play hard disk drive (HDD) leader after spinning off its flash memory business into SanDisk, has benefited from tight industry supply and rising enterprise demand. Average HDD prices have surged, prompting cloud providers to secure long-term supply contracts through 2026. Production capacity for high-capacity nearline drives remains sold out for the remainder of the year.
The fund’s exit comes amid WDC’s strong operational momentum, though no immediate market reaction was disclosed in the filings.