New York, Feb 17, 2026, 11:41 (EST) — Regular session
- Western Digital shares were up 0.1% at $281.97 in late-morning trade, after swinging between $272.69 and $288.13.
- The stock held up better than several storage peers, which were down on the session.
- Reports highlighting tight 2026 hard-drive supply put focus back on pricing power and cloud demand.
Western Digital Corp shares swung sharply on Tuesday and were last up 0.1% at $281.97 in late-morning trade, after touching a session low of $272.69 and a high of $288.13.
The move matters because Western Digital has become a proxy for data-center storage demand tied to AI workloads, where customers are willing to lock in supply early. If that tightness is real, it can translate into firmer prices and more stable cash generation in a business that used to lurch with PC demand.
Storage and memory stocks have also been among the market’s early leaders this year as investors chase parts of the AI buildout that sit behind the servers. Sandisk, spun off from Western Digital in February 2025, has led the S&P 500 so far this year, with Western Digital and Seagate also among the top performers, Investors.com reported. (Investors)
On Tuesday, Seagate shares were down about 2% and Micron slid about 1%, while Sandisk fell roughly 2%. The SPDR S&P 500 ETF was little changed.
Tom’s Hardware said CEO Irving Tan told the company’s quarterly call it was “pretty much sold out for calendar 2026,” citing firm purchase orders — signed commitments to buy — from its top seven customers. The report said Western Digital has long-term agreements, or LTAs, that extend into 2027 and 2028. (Tom’s Hardware)
That kind of booking can matter for a stock because it hints at pricing power and demand visibility, not just unit growth. It also suggests big cloud buyers — hyperscalers — are trying to pre-empt shortages by reserving capacity well ahead of delivery.
But the AI trade has a weak point: the spending cycle. Investopedia cited a Bank of America fund manager survey showing a record share of respondents think companies are overinvesting in AI. Investors also face macro tests later this week, including the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation gauge — due Friday and U.S. GDP data on Thursday. (Investopedia)
For traders, the next tell will be whether supply tightness shows up in pricing and margins, not just chatter. Any hint that cloud customers slow orders, or that capacity expands faster than expected, would likely whipsaw the stock again.
Western Digital last reported fiscal second-quarter revenue of $3.02 billion and non-GAAP earnings per share — an adjusted measure — of $2.13. For the fiscal third quarter, CFO Kris Sennesael said the company expects revenue of about $3.2 billion at the mid-point, with non-GAAP EPS of $2.30. It also declared a $0.125 per share dividend payable on March 18 to holders of record on March 5 — the next dated catalyst investors have locked in. (Westerndigital)
