Western Digital Corporation (WDC) Sets Sights on 50%+ Gross Margin and EPS $20+

Western Digital Corporation (NASDAQ:WDC) is among the 10 Best Performing S&P 500 Stocks in the Last 2 Years.

Western Digital Corporation (WDC) Sets Sights on 50%+ Gross Margin and EPS $20+

Wells Fargo notes that the CFO and CEO of Western Digital Corporation (NASDAQ:WDC) maintained an optimistic tone at an investor conference, as reported by TheFly on March 4. Management views the $20-plus/share EPS projection as a floor, as it believes the company can outperform these targets, moving to an impressive 50%-plus gross margin and 40%-plus EBIT. While emphasizing the acceleration of AI-generated video, the firm says that it will be a clear driver. Wells Fargo has an Overweight rating on the company and a $335 price target.

On March 3, Western Digital Corporation (NASDAQ:WDC) participated in the Morgan Stanley Technology, Media & Telecom Conference 2026, presenting a strategic overview. Management highlighted the company’s transition to a growth-focused business, driven by the rise of AI and the growing significance of data. Over a period of three to five years, the company aims to achieve an EPS of $20, with contracts from leading hyperscalers extending through 2028.

Regarding the financial aspect of Western Digital Corporation (NASDAQ:WDC), the CFO said,

“In addition to that, we have now transformed the company into a strong balance sheet company with some of the monetization of our SanDisk shares and in combination with strong free cash flow.”

Western Digital Corporation (NASDAQ:WDC) is a California-based company that provides data storage devices and solutions based on hard disk drive technology. Founded in 1970, the company offers its products through its computer manufacturers, distributors, and retailers.

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