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The surge in artificial intelligence (AI) infrastructure spending has not only lifted the pure-play AI companies, but also those playing a crucial role in supporting its ecosystem. One of these such stocks is Western Digital (WDC), a company that manufactures data storage devices built on hard disk drive (HDD) technology.
So far this year, Western Digital’s shares have surged about 127%. The rally stems from solid demand for its data storage offerings. As AI adoption accelerates, the demand for massive storage capacity has exploded, with data centers and cloud providers securing high-capacity drives. This demand is running ahead of supply, driving prices higher and strengthening the bull case for companies like Western Digital.