QM · rank #3 · 2026-10-27
WDC
NASDAQ · $132.58B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +327.95% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +130.8% |
| Profit margin Net profit margin, trailing 12 months. | +73.0% |
| Market cap (USD) Size filter: > $500M required. | $132.58B |
| Anchor (recent) Close on 2026-09-25 | $456.81 |
| Anchor (far) Close on 2025-09-26 | $106.74 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Western Digital is a high-capacity HDD supplier generating ~88% of revenue from cloud and hyperscale customers, riding an AI-driven data-center storage buildout with 40TB ePMR in qualification and HAMR on deck for 2027.
Rationale
The quality_momentum signal is reinforced by concrete fundamentals — 55% YoY revenue growth, 57.8% GAAP gross margin, $4.63 EPS, and Q2 guidance implying ~66–72% YoY growth — making the momentum score a reflection of real earnings acceleration rather than sentiment rotation.
Material risks
- 1Hyperscale customer concentration (88% of revenue from cloud) means a single large buyer pausing capex, shifting to in-house storage architecture, or accelerating NAND adoption could collapse the demand profile with little warning.
- 2HAMR qualification delays at either hyperscaler could cede the next capacity-density transition to Seagate, undermining WDC's technology roadmap and the margin expansion embedded in Q2 guidance.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.