Mizuho Raises Price Target for Western Digital (WDC), Keeps Outperform Rating

Western Digital Corporation (NASDAQ:WDC) is one of the 12 Best Performing AI Stocks So Far in 2025. On July 31, Mizuho increased its price target for Western Digital Corporation (NASDAQ:WDC) from $75 to $87 while keeping an Outperform rating.

This decision came after the company’s strong results for the June quarter, with the company reporting $2.61 billion in revenue. Western Digital Corporation (NASDAQ:WDC) also provided guidance for the September quarter, forecasting revenue of $2.70 billion and EPS of $1.54, surpassing consensus estimates of $2.55 billion in revenue and $1.42 in EPS.

Mizuho Raises Price Target for Western Digital (WDC), Keeps Outperform Rating

A data center filled with racks of hard disk drives and solid state drives.

Western Digital Corporation (NASDAQ:WDC) reported that its Nearline hard disk drive shipments reached 170 exabytes for the June quarter, a 17% increase compared to the previous quarter, with cloud customers making up 90% of revenues. According to estimates by Mizuho, average selling prices rose by 7% compared to the previous quarter and are expected to remain strong.

Additionally, Western Digital Corporation (NASDAQ:WDC) reported strong purchase orders and long-term agreements with its five biggest cloud service provider customers through fiscal year 2026. Two of these five agreements extend into the first half of fiscal 2027.

The company’s margins were described as strong, with AI helping to shift the product mix towards higher-capacity drives.

Western Digital Corporation (NASDAQ:WDC) is a global provider of data storage solutions. The company is committed to serving the world’s hyperscalers, enterprises, and cloud providers to support the next generation of AI-driven data workloads.

While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDC and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.