2024-07-03 14:00:00 ET
Summary
- Western Digital stock has surged over 50% year to date, driven by hopeful investors anticipating increased valuation after the company spins off its flash unit later this year.
- The timing is opportunistic, as flash memory pricing has lifted substantially with the industry exiting a period of oversupply.
- Generative AI tailwinds have driven boosted demand for data storage, which is helping demand to recover after a weak 2022-2023.
- Western Digital trades at a <10x P/E ratio, which has upside potential once spinoff details are confirmed.
Suddenly, rising in sympathy with NVIDIA Corporation ( NVDA ), chip stocks are hot again. Western Digital Corporation ( WDC ), a maker of both hard drives and NAND flash technology, has soared over 50% year to date after a multi-year slump, taking Western Digital just a notch above its 2021 highs....
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Western Digital: Value To Be Unlocked With Flash Spinoff