Western Digital Stock: Is WDC Outperforming the Technology Sector?

Valued at a market cap of $58 billion, Western Digital Corporation (WDC) is a data-storage technology company based in San Jose, California. It plays a critical role in supporting the rapid growth of data-driven applications, including artificial intelligence, cloud computing, edge devices, and mobile storage. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and WDC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the computer hardware industry. With a broad product portfolio, strong distribution network, and deep expertise in high-performance storage architectures, the company remains a key player in the industry.

This data-storage technology company is currently trading 4.9% below its 52-week high of $178.45, reached on Nov. 11. Shares of WDC have soared 82% over the past three months, significantly outperforming the State Street Technology Select Sector ETF’s (XLK) 11.5% rise during the same time frame.

Moreover, on a YTD basis, shares of WDC are up 279.6%, compared to XLK’s 27% return. In the longer term, WDC has rallied 218.5% over the past 52 weeks, considerably outpacing XLK’s 22.6% uptick over the same time frame. 

To confirm its bullish trend, WDC has been trading above its 200-day moving average since mid-May, and has remained above its 50-day moving average since late April. 

On Nov. 17, shares of WDC surged 2.9% after the company unveiled a range of next-generation storage solutions targeted at the rapidly expanding artificial intelligence (AI) and high-performance computing (HPC) markets. At an industry event, Western Digital introduced its Ultrastar Data60 and Data102 platforms, which are engineered to deliver higher storage density while reducing power consumption. 

WDC has also outpaced its rival, Seagate Technology Holdings plc (STX), which soared 189.7% over the past 52 weeks and 230.7% on a YTD basis. 

Looking at WDC’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 25 analysts covering it, and the mean price target of $178.43 suggests a 5.1% premium to its current price levels.