- UBS cut its Western Digital price target from $525 to $470 and shares fell 3.6%, citing uncertainty about HDD supply capacity and future pricing conditions.
- The price target revision was largely driven by Toshiba's announcement to significantly increase HDD production for AI data centers, which could dilute the favorable pricing environment that has benefited Western Digital.
- Chinese DRAM producer CXMT announced a new memory architecture and rapid share gains during a high-profile IPO, contributing to a broad sell-off across memory and storage stocks.
- UBS still expects Western Digital's upcoming earnings to exceed estimates, and Evercore maintains a positive outlook.
- The late-October earnings report is the next key focus for investors on demand, pricing trends, and industry capacity.
Quotes
“how long HDD pricing power can hold when adjacent memory markets crowd in with denser, cheaper bits”