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Western Digital (WDC) Unveils AI Data Cycle Storage Framework
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Western Digital Corporation (WDC - Free Report) recently unveiled a six-stage AI Data Cycle Storage Framework to help clients strategize and develop advanced storage infrastructures. This is expected to boost efficiency and help clients fully capitalize on their AI investments.
The company is focused on aligning its portfolio of enterprise-class SSDs and HDDs to support storage needs for each stage of the AI Data Cycle. As part of this, the company launched new products, including high-performance PCIe Gen5 SSD, 64TB SSD for fast AI data lakes and UltraSMR 32TB HDD.
Western Digital noted that AI models function in a nonstop loop of data consumption and generation. These models process data including text, images, audio and video and at the same time generate another set of “unique data”. With advancement in AI technologies, data storage systems will be required to have the capacity and performance to support the computational loads and speeds needed for huge models while handling enormous data.
WDC is looking to capitalize on this AI opportunity through its Flash and HDD solutions, which are designed to cater storage needs across different AI data cycle stages.
Ultrastar DC SN861 SSD is the company’s first enterprise-class PCIe Gen 5.0 solution. The new SSD (with capacities up to 16TB) can deliver up to three times random read performance increase compared with the prior generation. It also has ultra-low latency and high responsiveness for large language model training, inferencing and AI service deployment, added the company.
The Ultrastar DC SN655 enterprise-class SSD range, which is designed for storage-intensive applications, will complement the Ultrastar DC SN861 SSD. The latest options for the U.3 SSD can reach up to 64TB capacity. This will deliver improved performance and capacity for AI data preparation and bigger data lakes. At present, variants of new DC SN655 are sampling with volume shipments expected to begin in the latter half of the year.
WDC’s 32TB ePMR enterprise-class HDD is particularly designed to address huge data storage in hyperscale cloud and enterprise data centers. It is currently in the sampling stage with a few selected customers.
Headquartered in San Jose, CA, WDC is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies. It provides a broad range of HDD and Flash storage solutions used in desktop PCs, servers, network-attached storage devices, video game consoles, digital video recorders and a host of other consumer electronic devices.
Western Digital’s performance is benefiting from improving revenue trends across HDD and Flash businesses. An uptick in ASP pricing and improving demand for its nearline HDD offerings, especially SMR drives, bodes well. It noted that SMR-based drives represented 50% of nearline exabyte shipments in the last reported quarter.
For the current quarter, the HDD segment is anticipated to gain from continued momentum in its SMR product portfolio. Management expects increasing demand for generative AI-driven solutions across its end markets to boost demand for HDD and Flash offerings.
However, leveraged balance sheets amid volatile global macro conditions and stiff competition are concerns. Management added that it was working toward completing the splitting of the HDD and Flash businesses into two separate entities by the second half of 2024.
The Zacks Consensus Estimate for BMI’s 2024 EPS is pegged at $3.89, up 9.9% in the past 60 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.7%. The long-term earnings growth rate is 15.6%. Shares of BMI have risen 20.7% in the past year.
The Zacks Consensus Estimate for Arista Network’s 2024 EPS is pegged at $7.92, up 6.2% in the past 60 days. The long-term earnings growth rate is 15.7%. ANET’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 15.4%. Shares of ANET have gained 74.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has increased 10.9% in the past 60 days to $5.88. WWD earnings beat the Zacks Consensus Estimate in all the last four quarters, the average surprise being 26.1%. Shares of WWD have risen 61.3% in the past year.
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Western Digital (WDC) Unveils AI Data Cycle Storage Framework
Western Digital Corporation (WDC - Free Report) recently unveiled a six-stage AI Data Cycle Storage Framework to help clients strategize and develop advanced storage infrastructures. This is expected to boost efficiency and help clients fully capitalize on their AI investments.
The company is focused on aligning its portfolio of enterprise-class SSDs and HDDs to support storage needs for each stage of the AI Data Cycle. As part of this, the company launched new products, including high-performance PCIe Gen5 SSD, 64TB SSD for fast AI data lakes and UltraSMR 32TB HDD.
Western Digital noted that AI models function in a nonstop loop of data consumption and generation. These models process data including text, images, audio and video and at the same time generate another set of “unique data”. With advancement in AI technologies, data storage systems will be required to have the capacity and performance to support the computational loads and speeds needed for huge models while handling enormous data.
Western Digital Corporation Price and Consensus
Western Digital Corporation price-consensus-chart | Western Digital Corporation Quote
WDC is looking to capitalize on this AI opportunity through its Flash and HDD solutions, which are designed to cater storage needs across different AI data cycle stages.
Ultrastar DC SN861 SSD is the company’s first enterprise-class PCIe Gen 5.0 solution. The new SSD (with capacities up to 16TB) can deliver up to three times random read performance increase compared with the prior generation. It also has ultra-low latency and high responsiveness for large language model training, inferencing and AI service deployment, added the company.
The Ultrastar DC SN655 enterprise-class SSD range, which is designed for storage-intensive applications, will complement the Ultrastar DC SN861 SSD. The latest options for the U.3 SSD can reach up to 64TB capacity. This will deliver improved performance and capacity for AI data preparation and bigger data lakes. At present, variants of new DC SN655 are sampling with volume shipments expected to begin in the latter half of the year.
WDC’s 32TB ePMR enterprise-class HDD is particularly designed to address huge data storage in hyperscale cloud and enterprise data centers. It is currently in the sampling stage with a few selected customers.
Headquartered in San Jose, CA, WDC is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies. It provides a broad range of HDD and Flash storage solutions used in desktop PCs, servers, network-attached storage devices, video game consoles, digital video recorders and a host of other consumer electronic devices.
Western Digital’s performance is benefiting from improving revenue trends across HDD and Flash businesses. An uptick in ASP pricing and improving demand for its nearline HDD offerings, especially SMR drives, bodes well. It noted that SMR-based drives represented 50% of nearline exabyte shipments in the last reported quarter.
For the current quarter, the HDD segment is anticipated to gain from continued momentum in its SMR product portfolio. Management expects increasing demand for generative AI-driven solutions across its end markets to boost demand for HDD and Flash offerings.
However, leveraged balance sheets amid volatile global macro conditions and stiff competition are concerns. Management added that it was working toward completing the splitting of the HDD and Flash businesses into two separate entities by the second half of 2024.
Zacks Rank & Other Stocks to Consider
At present, WDC carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth consideration in the broader technology space include Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) and Woodward Inc (WWD - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BMI’s 2024 EPS is pegged at $3.89, up 9.9% in the past 60 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.7%. The long-term earnings growth rate is 15.6%. Shares of BMI have risen 20.7% in the past year.
The Zacks Consensus Estimate for Arista Network’s 2024 EPS is pegged at $7.92, up 6.2% in the past 60 days. The long-term earnings growth rate is 15.7%. ANET’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 15.4%. Shares of ANET have gained 74.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has increased 10.9% in the past 60 days to $5.88. WWD earnings beat the Zacks Consensus Estimate in all the last four quarters, the average surprise being 26.1%. Shares of WWD have risen 61.3% in the past year.