Western Digital has approved a significant increase in its share repurchase authorization, adding $1 billion to the existing pool. The company also outlined a long-term storage roadmap that aims for high-density hard disk drives (HDDs) with capacities above 100TB by 2029.
The new strategy focuses on AI-driven workloads and targets future enterprise and hyperscale demand. Management has emphasized balancing capital returns with long-term spending, which may raise questions among investors about the company’s priorities.
This announcement comes as Western Digital has recently redeemed its debt and continued paying dividends to shareholders. The expanded buyback authorization suggests management is committed to investing in share repurchases while also outlining a vision for AI-focused storage solutions.
However, this move also highlights a potential concentration risk, as the company relies heavily on large cloud customers. A new roadmap that emphasizes 40TB UltraSMR and future 100TB HDDs adds depth to Western Digital’s technology story.
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Source: https://sg.finance.yahoo.com/news/western-digital-expands-buybacks-ai-021338489.html