Western Digital Increases Stock Buyback Plan by $4 Billion as AI Drives Growth in Storage Chip Sales
Western Digital announced on Tuesday that, driven by surging demand for storage chips used in artificial intelligence servers, its board of directors has approved an additional $4 billion share repurchase authorization.
The company's stock rose about 5% in pre-market trading, with a year-to-date increase of 57%. Last year, its share price more than doubled.
A global shortage of storage chips has intensified competition between AI companies and consumer electronics firms for limited supply, driving up product prices and extending delivery times, while chip manufacturers are still struggling to ramp up production capacity.
As of this Monday, the data storage company still had about $484 million remaining under a $2 billion repurchase authorization approved in May last year.
Last week, the company released a financial forecast, projecting that both third-quarter revenue and profit would exceed Wall Street expectations, mainly supported by sales of its hard drives and flash storage products for AI servers.
Editor: Li Zhaofu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Jensen Huang out, Nvidia's $500 billion AI financing plan is also in jeopardy
The AI financing platform led by Jensen Huang has seen zero transactions since its high-profile launch in August. The core issue lies in Nvidia's guarantee rate of only 25%, which is significantly lower than competitor Broadcom's maximum of 72.5%, resulting in little interest from lenders. Analysts believe that, having lost its visionary leader and facing pressure from Wall Street to assume more risk, the project is unlikely to be implemented any time soon.
Four consecutive gains! Short-term US Treasury yields record fastest increase since 2022 as market bets on Fed rate hike
U.S. short-term Treasury yields have soared sharply for four consecutive trading days, with the 2-year yield rising to 4.862%, accumulating a 38.8 basis point increase—the largest four-day gain since June 2022. The 10-year yield simultaneously broke through the critical 5.10% threshold. Real interest rates have climbed as well, and the market has significantly raised its terminal rate expectations to 4.82%. An interest rate hike in December is now almost certain, while the probability of another hike in January stands at 75%.
Gold falls to over one-year low below $3,900 amid inflation concerns, US PPI data looms
Cisco Q1 revenue grows 24% year-on-year, fastest in over 15 years, AI infrastructure income expected to double｜Earnings Report Highlights
Cisco's first-quarter revenue reached $18.5 billion, with adjusted earnings per share at $1.40, both exceeding market expectations. The company raised its full-year revenue guidance to $74.8 billion-$75.8 billion, and expects AI infrastructure revenue to reach $9 billion this fiscal year, doubling from the previous year. The CEO stated that the company is in the early stages of a multi-year networking supercycle.
Crypto prices
More
