TLDR
- Western Digital stock jumped 16.8% to $219.38 after Nvidia CEO unveiled context memory storage technology at CES 2025
- Nvidia’s Vera Rubin chip platform includes new storage layer to accelerate AI chatbot response times
- Storage stocks rallied sector-wide with SanDisk up 27%, Seagate up 14%, and Micron up 10% to record highs
- SanDisk launched Optimus NVMe SSD line for AI PCs at CES, targeting developers and workstation builders
- Key U.S. jobs data reports due January 7 and January 9 could shift tech stock momentum
Western Digital stock surged 16.8% to $219.38 in after-hours trading Tuesday. Shares touched $221.16 earlier in the extended session.
Western Digital Corporation, WDC
The Western Digital stock rally followed Nvidia CEO Jensen Huang’s CES keynote in Las Vegas. Huang unveiled the Vera Rubin chip platform and introduced context memory storage technology.
Context memory storage helps AI chatbots process long conversations faster. The announcement triggered buying across data-storage stocks as AI infrastructure spending accelerates.
Western Digital produces hard disk drives for cloud, client and consumer markets. The company serves public and private cloud data centers.
AI Storage Stocks Rally to Records
The Western Digital stock move wasn’t isolated. SanDisk shares jumped 27% in Tuesday’s session.
Seagate Technology stock gained 14%. Micron stock rose 10%.
All four storage stocks hit record highs. “I think we’re going to have a very strong earnings season for Big Tech,” said Jed Ellerbroek, portfolio manager at Argent Capital.
Capital spending estimates are expected to rise again. AI data center buildouts are driving demand for storage hardware.
SanDisk announced its Optimus NVMe solid-state drive line at CES. The GX PRO tier targets developers, professionals and gamers building AI PCs.
The Optimus brand will roll out to retailers in the first half of 2026.
Western Digital Earnings and Guidance
Western Digital issued its last guidance in October. CEO Irving Tan cited “strong demand environment driven by growth of data storage in the cloud.”
CFO Kris Sennesael projected fiscal Q2 revenue of $2.9 billion. Non-GAAP EPS guidance came in at $1.88.
Western Digital completed its flash business separation on Feb. 21, 2025. SanDisk now operates as a standalone entity.
But the sharp Western Digital stock gains raise valuation concerns. Morningstar analyst William Kerwin said Nvidia’s platform “would add more SSD storage to AI infrastructure to improve model speed.”
Kerwin cautioned that elevated storage stock prices may not last. The warning reflects worries about stretched valuations.
U.S. labor market reports could provide the next catalyst for Western Digital stock. The Job Openings and Labor Turnover Survey releases Wednesday, January 7.
The December Employment Situation report follows Friday, January 9. Both data points influence Federal Reserve rate expectations and high-growth tech stocks.
