Western Digital Corporation shares have surged 154.5% this year, driven by AI-fueled demand for high-capacity data storage, while NVIDIA's gains have been more subdued at 16.7%. Western Digital reported fiscal fourth-quarter 2026 revenues of $3.75 billion, up 44% year over year, and guided for fiscal first-quarter 2027 revenues of $4.1 billion, representing 42% to 49% growth. The company expects a non-GAAP gross margin of 55% to 56% for the fiscal first quarter of 2027, up from 54.4% in the prior quarter, and generated free cash flow of $1.28 billion. The average short-term price target for WDC stock is $664.77, implying a 53.1% upside from its last closing price of $434.30, with the highest target at $1,050. The Zacks Consensus Estimate for earnings per share is $18.85, up 165.1% year over year, and the expected earnings growth rate for the current year is 84.4%.
