WDC sees cloud and AI demand boosting HDD growth, margins
Secular demand for high-capacity HDDs is driven by cloud and AI, supporting long-term customer commitments. WDC cites 40TB+ roadmaps and HAMR drives, aiding margin expansion and free cash flow for shareholder returns.
Seemingly secular demand for high-capacity HDDs is being driven by cloud and AI, with exabyte growth exceeding 25% CAGR and long-term customer commitments described as robust. Technology roadmaps include 40TB+ and HAMR drives, which are cited as supporting margin expansion and strong free cash flow, and are said to enable increased shareholder returns.