Western Digital faces future price pressure as Toshiba plans to double hard-drive capacity, and its 3 largest customers supplied 44% of sales. Yet supply remains tight, and S&P expects sales and cash generation to grow, leaving its outlook much the same.
The risk is that more hard drives could eventually weaken prices, especially if data-center spending slows. But supply remains tight, and S&P expects Western Digital’s sales and cash generation to grow. Those opposing facts leave the company’s outlook much the same.
Toshiba’s planned expansion could later pressure hard-drive prices. But Seagate said its 2026 storage capacity was already sold out, and the shortage is expected to continue for now, leaving its outlook much the same.
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