Western Digital (WDC) views the current macroeconomic conditions as supportive with mobility and cloud computing as its primary demand drivers. WDC’s CEO Steve Milligan stated, “The positive third quarter dynamics included continued strong demand for our NAND flash products. Our results in the March quarter demonstrate the power and agility of our platform, and a sustained focus on operational execution by our global team.”
WDC aims to pursue a strategy based on significant growth in big data and fast data applications. There have been rapid advancements in applications such as IoT (Internet of Things), AI, and machine learning, which have resulted in exponential data creation over the last few quarters.
WDC has estimated that the number of connected devices will grow from 9 billion in 2018 to 75 billion by 2025. That growth would increase the demand for storage infrastructures and solutions to preserve and secure the diversity of data. WDC is optimistic about its portfolio of storage products and solutions to support these growth trends.
Growth in the data center
As enterprise and hyperscale cloud customers accelerate their spending to keep pace with the growth in data, it provides WDC with an opportunity for its data storage solutions.
WDC is also optimistic about the mobile market where it’s looking to capture market share and growth opportunities with its comprehensive product portfolio. The increase in average smartphone capacity is another key driver for WDC’s long-term growth.
Analysts expect WDC’s revenue to increase 7.9% year-over-year in fiscal 2018. Peers Seagate Technology (STX), Pure Storage (PSTG), and NetApp (NTAP) expect revenue growth of 3.5%, 32.6%, and 5.2%, respectively, in fiscal 2018.