Western Digital Corp (WDC) is witnessing increased demand for its storage solutions amid surging investments in AI infrastructure, particularly in large-scale data centers. The company's positioning in enterprise and cloud storage positions it to benefit from sustained AI-related spending trends.
- Enterprise storage revenue at WDC rose 12% YoY in Q3 2025
- Enterprise segment now represents 43% of WDC’s total revenue
- Data center drive shipments grew 27% YoY in Q3 2025
- Major cloud providers are increasing procurement of WDC storage solutions
- WDC shares gained 9% over the past month on AI-related optimism
- Energy efficiency and high density are key differentiators in AI-ready storage
Western Digital Corp (WDC) is increasingly positioned as a beneficiary of the global shift toward AI-driven data processing, with enterprise customers ramping up investments in high-capacity storage systems. As artificial intelligence workloads grow—especially in generative AI and large language models—data centers require faster, more scalable storage solutions, areas where WDC’s HDDs and SSDs play a key role. Recent contract wins with major cloud providers indicate elevated procurement volumes, though exact figures remain undisclosed. The company reported a 12% year-over-year increase in revenue from its enterprise storage segment during Q3 2025, signaling stronger traction in AI-adjacent markets. This segment now accounts for 43% of total revenue, up from 38% in the same period last year. Meanwhile, Western Digital’s data center-focused product line saw a 27% growth in unit shipments compared to Q3 2024, suggesting heightened integration into AI infrastructure deployments. Market analysts note that WDC’s focus on energy-efficient, high-density drives aligns with the efficiency demands of modern AI clusters, which are constrained by power consumption and cooling capacity. This technical fit has strengthened its competitive edge among hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud, all of whom have publicly expanded their data center footprints recently. The stock has responded positively, with WDC shares rising 9% over the past month, reflecting investor confidence in its exposure to the AI supply chain. However, long-term success hinges on maintaining margins amid rising competition from NAND flash suppliers and evolving storage architectures such as NVMe over Fabrics.