Western Digital Sold Out All 2026 Hard Drive Production as AI Centers Scramble (247wallst.com)

Western Digital (NASDAQ:WDC) has announced that its entire hard drive production capacity for 2026 is completely sold out, driven by surging demand from hyperscale AI data centers. This significant shift from a consumer-focused business to catering primarily to enterprise infrastructure has resulted in a 65% increase in the company's stock this year. Investors are reacting strongly, as evidenced by heightened sentiment on Reddit, where discussions surrounding the sell-out garnered thousands of upvotes, reflecting an optimistic outlook on the future of AI storage. This unprecedented demand underlines a major transformation in the market for data storage, with Western Digital's HDD capacity now 89% directed towards AI hyperscalers and only 5% towards consumer products. The long-term contracts extending through 2028 not only establish revenue predictability unheard of in traditional storage companies but also signal a broader trend in the tech industry that prioritizes infrastructure for AI workloads. As competitors like Seagate Technology also see their stocks climb, it becomes clear that this is not an isolated event but a significant realignment in the valuation of storage solutions critical for powering the AI data economy. Investors will be closely watching Western Digital's upcoming presentation at the Morgan Stanley Technology, Media & Telecom Conference for further insights on capacity expansion and profitability.