forbes.com
WDC Projects \$22.6B Revenue by 2028 Driven by AI and HAMR HDD Technology
Western Digital (WDC), at its February 12 investor day, announced plans to separate from SanDisk by February 21, 2025, focusing on HDDs with a projected \$22.6B revenue by 2028 driven by AI-related storage demand and HAMR technology, offering a 6X lower cost per TB than flash memory from 2024-2030.
- What is the primary driver of Western Digital's projected revenue growth to \$22.6B by 2028, and what specific technological advancements are enabling this growth?
- Western Digital (WDC), following its February 12 investor day, plans to separate from SanDisk by February 21, 2025, focusing on hard disk drives (HDDs). WDC projects a significant increase in nearline HDD demand, driven by AI applications, with a 131% increase in shipments from 2024-2028 and overall revenue growth to \$22.6B by 2028. This growth will be fueled by advancements in HDD technology.
- How does Western Digital's cost advantage over flash memory contribute to its long-term competitiveness in the data storage market, and what are the key technological innovations underpinning this advantage?
- WDC's strategy centers on leveraging its cost advantage over flash memory (6X lower cost per TB from 2024-2030) to capitalize on the exploding data storage market. The company's focus on heat-assisted magnetic recording (HAMR) technology aims to increase HDD storage capacity up to 100TB and maintain its competitiveness in the cloud storage market, which is expected to grow at a 23% CAGR.
- What are the potential risks and challenges associated with Western Digital's transition to HAMR technology, and how is the company mitigating these risks to ensure a successful product launch and market adoption?
- WDC's transition to HAMR technology, projected to begin volume manufacturing in 2026, is a critical factor for its future growth. Hyperscale testing has commenced, indicating a measured yet decisive approach. The company's exploration of AI compute and other emerging storage technologies suggests a diversified strategy to mitigate risks and exploit future opportunities. This proactive approach positions WDC for sustained growth in the evolving data storage landscape.
Cognitive Concepts
Framing Bias
The framing is largely neutral and factual. The article presents Western Digital's announcements and projections without overt attempts to sway the reader's opinion. While focusing on the positive aspects of WDC's strategy, this is appropriate given the context of an investor day presentation.
Sustainable Development Goals
Western Digital's (WDC) advancements in hard disk drive (HDD) technology, particularly the development of heat-assisted magnetic recording (HAMR) drives, directly contribute to SDG 9. HAMR technology promises significant increases in storage capacity and efficiency, crucial for supporting the growing demands of data centers and AI applications. The company's investment in R&D and projected revenue growth showcase a commitment to innovation in the digital storage sector, a key component of modern infrastructure. The projected 131% uplift in Nearline HDD storage shipments from 2024 through 2028 to support AI workloads further emphasizes this positive impact.