Western Digital Corporation (WDC) Sets Sights on 50%+ Gross Margin and EPS $20+

Western Digital Corporation (NASDAQ:WDC) is among the 10 Best Performing S&P 500 Stocks in the Last 2 Years.

Wells Fargo notes that the CFO and CEO of Western Digital Corporation (NASDAQ:WDC) maintained an optimistic tone at an investor conference, as reported by TheFly on March 4. Management views the $20-plus/share EPS projection as a floor, as it believes the company can outperform these targets, moving to an impressive 50%-plus gross margin and 40%-plus EBIT. While emphasizing the acceleration of AI-generated video, the firm says that it will be a clear driver. Wells Fargo has an Overweight rating on the company and a $335 price target.

On March 3, Western Digital Corporation (NASDAQ:WDC) participated in the Morgan Stanley Technology, Media & Telecom Conference 2026, presenting a strategic overview. Management highlighted the company’s transition to a growth-focused business, driven by the rise of AI and the growing significance of data. Over a period of three to five years, the company aims to achieve an EPS of $20, with contracts from leading hyperscalers extending through 2028.

Regarding the financial aspect of Western Digital Corporation (NASDAQ:WDC), the CFO said,

“In addition to that, we have now transformed the company into a strong balance sheet company with some of the monetization of our SanDisk shares and in combination with strong free cash flow.”

Western Digital Corporation (NASDAQ:WDC) is a California-based company that provides data storage devices and solutions based on hard disk drive technology. Founded in 1970, the company offers its products through its computer manufacturers, distributors, and retailers.

While we acknowledge the potential of WDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure: None.