WDC Shares Soar 9.88% on Cloud/AI Demand, 44TB Drive Launch, and Analyst Upgrades

Western Digital (WDC) shares climbed 1.7% today, marking the fifth consecutive day of gains and a 9.88% rise over the past five days. The stock hit its highest level since August 2025, with an intraday surge of 1.85%, driven by renewed investor confidence in the company’s strategic and financial trajectory.

Here are the results of the requested back-test, together with an interactive report you can open in the panel on the right.

Key performance metrics (08-29-2020 → 08-28-2025):

• Total return (strategy): 15.22%

• Annualized return: 3.22%

• Maximum drawdown: 8.63%

• Sharpe ratio: 0.37

• Average trade return: 1.08%

• Avg gain / Avg loss: +4.88 % / –3.27 %

Assumptions filled in for unspecified items:

“Recent high” interpreted as a new 52-week (252-trading-day) high – the most common definition in equity studies.

Holding period fixed at 5 trading days (≈ 1 calendar week). Implemented through the max_holding_days risk-control field.

Prices and returns are based on daily closing data; no transaction costs or slippage included.

Feel free to explore the interactive report for trade-by-trade details, equity curve, and additional analytics.

Recent analyst upgrades to “Outperform” underscored growing demand for cloud storage and AI-driven data center expansion, positioning WDC to capitalize on high-capacity storage needs. Product launches such as 22TB and 44TB drives further align the company with evolving market demands, reinforcing its appeal to investors seeking exposure to growth sectors.

A $13.5 billion refinancing of its Kioxia merger debt highlighted improved financial flexibility, enabling capital allocation toward R&D and market expansion. The partnership with Kioxia, combining HDD expertise with NAND flash capabilities, remains pivotal in maintaining competitive advantage amid shifting storage dynamics.

Strong revenue growth of 30% year-over-year, driven by data center and enterprise solutions, outpaced expectations and demonstrated operational efficiency. Expanding profit margins and a $2 billion stock buyback program, aimed at repurchasing 11.7% of outstanding shares, signaled management’s confidence in undervaluation and long-term value creation.

WDC’s competitive positioning was bolstered by margin resilience and innovation in high-capacity HDDs, allowing premium pricing in high-growth segments. Institutional ownership at 92.51% and a P/E ratio below the sector average further supported a bullish outlook, while declining short interest indicated reduced bearish sentiment.

Despite mixed signals from insider transactions, the company’s earnings outperformance and optimistic guidance for Q1 2026 reinforced investor optimism. Analyst consensus of “Moderate Buy” and a target price of $78.39 reflected confidence in WDC’s alignment with AI and cloud trends, financial discipline, and strategic execution.