Seagate Technology Is Soaring After Its Strong Earnings Report. Should You Buy Western Digital Before Its Earnings Report?

Western Digital (WDC) faces its Aug. 5 earnings report on the heels of competitor Seagate Technology's blowout quarter, which delivered a 48% revenue surge and pushed Seagate shares above $100. The rally was driven by AI infrastructure demand from hyperscale data center operators, a tailwind that Western Digital is equally positioned to capture in the hard disk drive market.

Three factors support a bullish case for Western Digital heading into the print. Hyperscaler demand for storage remains robust as AI workloads expand. Western Digital issued strong forward guidance in its last report, signaling management confidence in the business trajectory. Sector sentiment has turned decisively positive following Seagate's performance, validating the thesis that AI-driven storage needs are translating to HDD revenue growth.

The primary risk is valuation. Optimism around AI storage demand may already be reflected in Western Digital's current share price, leaving limited room for upside surprise unless the company significantly beats expectations or raises guidance more aggressively than the Street anticipates.