New York, February 16, 2026, 17:32 ET — Market closed
- Western Digital (WDC.O) slipped 0.9% to end Friday at $281.58, just before the U.S. market holiday.
- Over the weekend, management noted that much of the 2026 hard-drive supply is already spoken for—some customers have even locked in agreements through 2028.
- Investors are tuned in for any word on timing for the company’s leftover SanDisk shares, with Feb. 21 circled on calendars.
Western Digital (WDC.O) heads into Tuesday’s session under scrutiny after CEO Irving Tan revealed the company has “pretty much sold out” all its capacity through calendar 2026. U.S. markets were closed Monday for Presidents Day. (The Verge)
The comments, first delivered during the company’s latest earnings call, popped up again over the weekend—reminding traders about the lingering storage shortage. With this stock swayed as much by chatter over contracts as by its actual results, Tuesday’s opening bell will be the first meaningful gauge.
Hard drives remain the low-cost option for storing massive amounts of data, despite AI pushing spending toward speedier chips and upgraded networking equipment. That’s what’s behind the emphasis on longer-term contracts—they give prices support and help smooth out erratic shipment patterns.
Western Digital slipped 0.9% to finish Friday’s session at $281.58.
Last month, the company posted fiscal Q2 revenue at $3.02 billion—a 25% jump from last year—and notched $653 million in free cash flow. Looking ahead, it’s guiding for fiscal third-quarter revenue growth of around 40% year over year at the midpoint. (Western Digital)
Seagate (STX.O) is also signaling tight supply. CEO Dave Mosley said on a late January analyst call that the company’s entire “nearline” data-center drive capacity is spoken for through 2026, and it’s gearing up to begin booking some 2027 orders soon. (Investing)
During the earnings call, Western Digital executives described the pricing environment as “stable.” The company still holds 7.5 million SanDisk shares, and plans to sell those off by the Feb. 21 deadline, with proceeds earmarked for debt reduction. (Investing)
Multi-year contracts are a double-edged sword. Customers lock in supply, sure, but if prices spike beyond the deal’s terms, that upside slips away.
Still, the set-up looks shaky. Should cloud spending slow, or qualification of those high-capacity models drag out, this market—propped up by tight allocations—could unravel fast, driving prices lower.
Investors are watching the pace at which solid-state drives, built on flash memory, take over jobs that used to automatically go to traditional disks. Cheaper flash chips can undercut the hard-drive pricing narrative.
When the market opens Tuesday, traders are looking to see if weekend talk translates into buying. Eyes are also on Western Digital for any word about the Feb. 21 SanDisk-share schedule. What’s next? Watch for changes in order visibility and pricing arrangements for 2027 and later.
