HDD Demand “Stronger for Longer”: What It Means for WDC

Posted on by Eben@CANSLIM Research

In a report titled “Western Digital | North America F1Q27 Earnings – Fighting Misconceptions After A Strong Quarter”, the analysis contends that the market misread management’s capital expenditure commentary, which drove the shares down 6.5% after hours despite an across-the-board beat and raise. The report stresses that WDC has been consistent since spinning off its flash business: investment in head, media and substrate capacity supports a mix shift toward higher-capacity 10-14 platter drives rather than unit growth. It notes that as recently as September, management said capex as a percentage of revenue might run slightly above its 4-6% range for a couple of years before normalising over a five-year period.

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