Western Digital Stock Soars as AI Infrastructure Demand Expands

Western Digital's stock surged 6.1% to $539.82 on Monday morning as investors flocked back into storage stocks, fueled by Washington's push to reduce Apple's reliance on Chinese memory suppliers.

The move lifted sentiment across the broader storage ecosystem, but Western Digital is not directly at the center of the NAND and DRAM debate.

Instead, investors are viewing the company as a key beneficiary of the AI infrastructure boom, driven by exploding demand in data centers.

The real fuel behind the rally is Western Digital's own execution, with revenue surging 44% to $3.75 billion in its fiscal fourth-quarter results and GAAP gross margin expanding to 54.1%.

Management guided for another strong quarter, with revenue expected between $4 billion and $4.2 billion and adjusted earnings of $3.85 to $4.15 per share.