Overview
- Western Digital says it is “pretty much sold out” for 2026, with firm purchase orders from its top seven customers and long‑term agreements extending with major buyers into 2027 and 2028.
- Seagate reports its nearline capacity is fully allocated through 2026, expects to begin accepting orders for the first half of 2027 soon, and is prioritizing higher‑capacity drives over adding production lines.
- The bulk of commitments comes from hyperscalers building AI data centers—named buyers include Amazon Web Services, Google, Microsoft, Meta, and OpenAI—seeking assured access to high‑density storage.
- Consumer markets are feeling the squeeze as retail hard‑drive prices have climbed roughly 20%–50% since late 2025, with averages reported near 46%, and SSD pricing is also rising as manufacturers shift output.
- Western Digital’s revenue mix underscores the pivot, with about 89% from cloud customers and roughly 5% from consumers, alongside a recent quarter showing 25% year‑over‑year revenue growth to $3 billion and strong ePMR shipments.