May. 9 at 5:30 AM
So many stocks. So little time. I’m still catching up. Never has there been such widespread action all at once.
$WDC reported Q3 earnings on April 30 and is firing on all cylinders, with
$3.34B in cloud revenue (up 48% YOY) and EPS nearly doubling. Management’s Q4 outlook surpassed analyst estimates, with
$3.65B projected revenue (40% YOY).
The company is set for a major second-half 2026 launch as it scales its 40TB UltraSMR ePMR drives. This shift to higher-capacity drives is expected to significantly widen profit margins by increasing the number of exabytes shipped without requiring new factory capacity.
Management has confirmed that
$WDC's entire hard drive production capacity for 2026 is 100% sold out. AI Data Center demand continues as hyperscalers (
$AMZN,
$MSFT,
$GOOG,
$META) lock in long-term storage capacity agreements, with some already extending into 2027 and 2028.
