Wall Street Just Slashed Western Digital’s Price Target by $280. Here’s Why I’m Still Buying.

Western Digital Corporation (WDC) just got a mixed signal from Wells Fargo. On Oct. 16, the firm cut its price target from $730 to $450 but kept its “Overweight” rating. The stock has slid sharply after reports that Toshiba (TSHTY) plans to double its hard drive output for AI data centers. That could ease the drive shortage that has pushed prices higher. Still, Wells Fargo expects revenue growth of 25% to 30% or more, with gross margins reaching 60% to 65% or higher.

A few days earlier, UBS also cut its target from $525 to $470 while keeping a “Neutral” rating. It warned that hard drives may be more cyclical than the market thinks, with a possible downturn in late 2028 or early 2029.