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Western Digital Corporation (NASDAQ:WDC) is one of the

10 Best Performing Data Center Stocks So Far in 2026.

On May 18, 2026, Western Digital Corporation (NASDAQ:WDC) announced the integration of post-quantum cryptography into its latest high-capacity Ultrastar UltraSMR hard disk drives, marking a new step in storage security for next-generation AI infrastructure. The company said the move comes as AI systems increasingly shift from compute-focused architectures toward persistent data storage environments supporting training, inference, and broader AI interactions. Western Digital added that the new drives are currently undergoing qualification with multiple hyperscale customers, reflecting early interest in quantum-resilient storage technologies.

Earlier in May, Baird raised the firm’s price target on Western Digital Corporation (NASDAQ:WDC) to $450 from $310 and maintained an Outperform rating on the shares. The firm said its updated model, following the company’s Q1 results, points to another wave of accelerating demand for storage infrastructure.

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Last month, Western Digital Corporation (NASDAQ:WDC) reported Q3 adjusted EPS of $2.72, versus the consensus estimate of $2.39. Revenue totaled $3.34B, versus the consensus estimate of $3.25B. CEO Irving Tan said the company delivered strong execution during the quarter, with revenue growth across all end markets alongside expanding gross and operating margins. Gross margin exceeded 50% during the period. Management also announced a 20% increase in the quarterly cash dividend to $0.15 per share, citing confidence in the durability of the business. Tan added that AI workloads ranging from training and inference to agentic and physical AI continue driving persistent storage demand, benefiting HDD deployments.

Western Digital Corporation (NASDAQ:WDC) develops and manufactures hard disk drive-based storage devices and data infrastructure solutions globally.

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.

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