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Western Digital's HDD Shortage: AI Demand Drives Prices Up

2/16/2026

25 5 Full Breakdown

Summary

Story summary

Western Digital has sold out of HDD capacity through 2026, and CEO Irving Tan says agreements with AI and enterprise clients extend into 2028.
Consumer revenue has dropped to 5%, while cloud and enterprise sales now total 89% of revenue.
AI-driven demand has pushed HDD prices to two-year highs, creating a shortage that may raise consumer prices and limit affordable options as manufacturers prioritize enterprise contracts.

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Story summary

Western Digital has sold out of HDD capacity through 2026, and CEO Irving Tan says agreements with AI and enterprise clients extend into 2028.
Consumer revenue has dropped to 5%, while cloud and enterprise sales now total 89% of revenue.
AI-driven demand has pushed HDD prices to two-year highs, creating a shortage that may raise consumer prices and limit affordable options as manufacturers prioritize enterprise contracts.