WDC

"And then there's SanDisk and it makes the memory that fills those servers and it's down 48% but its backlog runs $41 billion. That's more than 3 years of revenue that's already signed for and it trades at around six times what it's expected to earn next year. So for a company that's growing 80% that happens to be pretty cheap."

"Of course on Wednesday we are going to have some memory players although not really the HBM players we have Western Digital and SanDisk in I think a month from now something like that we will have Micron to talk a bit more about this whole memory space"

"After that, you're going to get Western Digital. That's going to be another one that's going to wake up."

"Western Digital, SanDisk. plenty of companies will report their quarterly figures over the next couple of uh days."

"Because we do have SanDisk and Western Digital on Wednesday as well."

"As for SanDisk and Western Digital, I believe that the story here will continue."

"After the close, for again, for this whole AI semiconductor story, SanDisk, Western Digital."

"Western Digital and Lam Research both down 38%"

"Western Digital, 24.7%"

"Western Digital is right behind at 55.3%."

"Western Digital, 17.8%."

"Western Digital 0.82."

"We have Western Digital, the veteran data storage giant trying to navigate the cycle."

"Western Digital, Lam Research, and Seagate simply lack the aggressive growth and lean balance sheets required to dethrone the true leaders of the AI hardware arms race."

"Western Digital, 23.9%"

"Western Digital, 34.8%."

"For higher beta velocity, you look at names like Western Digital, Nvidia, Meta, or Taiwan Semiconductor."

"As a reminder, SanDisk had [732s] spun out of Western Digital last year, [735s] near $38 a share, and revenue just [738s] exploded 251% in a single quarter."

"If this time is different, Micron, SanDisk, Western Digital, all of these memory companies are going to be good investments because they are relatively low price-to-earnings multiples."

"AMD Micron Western Digital etc etc these were names that were red last week"

"WDC, that's Western Digital down 26%"

"So, when thinking through the customer concentration issues and the long-term threat of solid-state drives, I would actually think that this company is a high-risk business right now."

"So, right now Western Digital is clearly in phase four, the capital return phase. Now, Stock Screener rated the company's current moat as narrow, given that it's only one of two hard disk drive manufacturers globally that's operating at scale."

"Another risk to think about is solid-state drives. So, these are blazing fast when compared to hard drives, like the ones that Western Digital makes."

"So, in judging this company's management team, I would give it a four out of five with the opportunity to raise that number to five out of five over time as we have more tenure in the corner office for this CEO."

"So, to review, I think this business is fairly exciting right now. It's in the capital return phase. It's moat is narrow and stable. The growth over the next couple years looks very high. The management team has done a fabulous job over the last couple years, but offsetting that is the fact that this business has a fairly risky right now and the valuation is really high right now. But, after analyzing this company, I now know why so many people are excited to own this stock."

"Now, which phase of the business growth cycle is Western Digital in? I think the answer there is clearly that it's in phase four, the capital return cycle."

"So, in rating the company's moat, I'm happy to see that its size is actually narrow, and then its direction is stable."

"So, if you're looking for cheap storage, Western Digital is the way to go."

"Now, in early 2025, Western Digital had a flash memory business, but actually spun that off as SanDisk and now operates basically as a pure play hard drive company."

"But, it is important to note that cloud customers are buying both from Western Digital and Seagate right now, so they don't seem to massively favor one company over the other."

"Make no mistake, on both a trailing and forward basis, this stock is very expensive right now. Now, offsetting that high valuation is the fact that this company has exceeded guidance in the last couple of quarters, and demand for all things AI remain off the charts high. I have a hard time calling this stock anything but expensive right now."

"Western Digital stock has gone absolutely parabolic over the last year and its stock currently has the highest bull to bear ratio on all of Reddit. So, let's do some fundamental analysis on this stock to figure out why bulls are so excited."

"And the uptick in recent years has been especially pronounced. And from a business quality perspective, I like to think about a couple of key questions. Number one is is revenue predictable? And the company's revenue has become far more predictable in recent years thanks to the huge uptick in AI spending."

"Now, a key question to ask is is this pricing power maintainable over the long term? That question remains up in the air, but for now, there's no doubt that this company has pricing on its side."

"So, while it's hard to come up with a truly long-term growth estimate for this business, there's no doubt in my mind that over the next few years at least, this company has very high growth potential."

"the smaller players like Kioxia, SanDisk, Western Digital, Seagate, NA, and Windbond."

"Because in 2011, Western Digital, they lost share when its Thailand fabs completely flooded out."