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StocksMedium•4 March 2026•

1 min read

Western Digital Sells Out 2026 HDD Capacity Amid AI Storage Boom

Key Facts

1Western Digital has sold out its HDD capacity for 2026.

2The company guides for 40% Y/Y revenue growth and 47–48% gross margins in 3QFY26.

Western Digital Corporation is experiencing a significant financial re-rating as demand for AI-driven storage solutions surges. The company has reportedly sold out its entire hard disk drive (HDD) production capacity for 2026, signaling robust long-term demand from data centers. For the third quarter of fiscal year 2026, Western Digital projects a 40% year-over-year revenue growth alongside gross margins reaching 47-48%. This growth follows a strategic structural transformation, including the divestiture of SanDisk to focus on high-margin nearline HDDs. These developments have significantly improved the company's debt profile and overall market positioning. Analysts view these factors as a strong indicator of a sustained growth trajectory for the semiconductor giant in the evolving AI landscape.