- Western Digital shares fell as investors reacted to Toshiba's plan to sharply boost hard drive capacity for AI data centers by 2027.
- Investors fear a future supply glut and tougher price competition could squeeze Western Digital's margins.
- Fiscal Q4 2026 revenue reached $3.3 billion, up 44% year-over-year, with cloud customers comprising 88% of sales.
- Exabyte shipments grew 22% in fiscal Q4 2026, below the 25% growth for all of fiscal 2026, while a high-teens percentage rise in blended average price per terabyte drove revenue.
- Fiscal Q1 2027 revenue guidance is $4.1 billion, and investors are watching whether exabyte growth exceeds 22% year-over-year.
Quotes
“raising fears of a future supply glut and tougher price competition that could squeeze Western Digital's margins”
“frontier AI labs, neoclouds, and manufacturers integrating AI into machines”