Should I Buy Western Digital Stock in 2025? Expert Advice for Philippine Investors

What is Western Digital?

How much is Western Digital stock?

The price of Western Digital stock is rising this week. As of now, WDC trades at $50.18, up 0.68% over the last 24 hours and showing a 10.63% gain for the week.

Western Digital trades at a P/E ratio of 17.18 and offers a dividend yield of 0.80%, while its stock beta of 1.48 indicates higher volatility than the market.

Investors in the Philippines should note the strong momentum, but also consider the potential for larger price swings in this rapidly evolving sector.

Our full analysis on Western Digital stock

After a thorough review of Western Digital’s latest fiscal results alongside a detailed assessment of its stock performance over the past three years, our multidisciplinary team has leveraged a suite of proprietary algorithms, blending financial metrics, technical indicators, market dynamics, and competitive benchmarking. The result is a data-driven perspective that positions Western Digital at an intriguing juncture within the global data storage landscape. So, why might Western Digital stock once again become a strategic entry point into the technology hardware sector as we look ahead to 2025?

Recent Performance and Market Context

Western Digital (NASDAQ: WDC) has demonstrated notable resilience and adaptability in a swiftly evolving technology environment. At a current price of $50.18 (as of May 27, 2025), the stock stands well within its 52-week range ($28.83 – $61.62), having recorded a healthy 10.6% gain over the past twelve months. Though the most recent six months show a modest pullback of roughly 9.7%—mirroring a broader consolidation across select tech subsectors following rapid gains—the longer-term trajectory remains convincingly upward.

Key positive events underpin this momentum. Western Digital completed the high-impact spin-off of its Flash memory business (now SanDisk Corporation) in February 2025, allowing it to focus resources on its core hard disk drive (HDD) and cloud-centric storage segments. Further, the initiation of a regular dividend program with an appealing annualized yield of 0.8% signals confidence in cash flow consistency while compensating shareholders with a welcome mix of growth and income.

Macroeconomically, the global digital transformation continues to intensify, with data creation and cloud infrastructure investments at record highs. Southeast Asia—including the Philippines—is experiencing rapid cloud adoption, further underscoring favorable regional tailwinds for data storage providers.

Technical Analysis

Western Digital’s technical picture is robust, signaling the stock may be entering a new bullish phase. Current price action sits well above all key moving averages: 20-day SMA ($46.57), 50-day SMA ($42.04), 100-day SMA ($45.18), and 200-day SMA ($47.39). This broad outperformance over multiple timeframes highlights sustained momentum.

• RSI (14): At 71.31, the stock is approaching the overbought region, commonly interpreted as a sign of underlying strength rather than near-term exhaustion, particularly when driven by improving fundamentals.
• MACD (12,26): A solid 2.66, indicating bullish price action and upward momentum persisting over the short to medium term.

Major support levels at $46.57 and $42.04—aligned with 20- and 50-day SMAs—suggest a technical floor, offering attractive risk/reward setups for new positions should minor pullbacks emerge. Key resistance points, notably $54.16 and the 52-week high of $61.62, mark potential upside targets as Western Digital advances.

Recent price surges on strong volume lend additional conviction, aligning with a landscape where technical and fundamental catalysts are converging favorably.

Fundamental Analysis

A disciplined approach to Western Digital’s fundamentals reveals a company entering 2025 with renewed vigor and focus. Q3 FY2025 results (reported April 30, 2025) were a clear highlight:

• Revenue: $2.29 billion, up 31% year-on-year—exemplifying the power of cloud storage demand.
• Gross Margin: 40.1% on a non-GAAP basis, up 170 bps quarter-on-quarter and among the company’s strongest showings in recent years.
• EPS (Non-GAAP): $1.36, handily outperforming analyst estimates of $1.06.
• Operating Income: $596 million, demonstrating robust operational leverage.
• Cash and Equivalents: $3.48 billion, affording financial flexibility for strategic investments.

Valuation metrics underscore the stock’s attractiveness relative to technology peers. A trailing P/E of 17.2 coupled with an even more compelling forward P/E of 9.1 suggest the market is underpricing Western Digital’s accelerated growth and renewed efficiency post-business separation. At a price-to-sales ratio of only 1.13, Western Digital sits attractively below the average for tech hardware/cloud infrastructure groups, indicating further upside potential.

The decision to focus on core mass-storage solutions—particularly HDDs for hyperscale and enterprise/cloud applications—has positioned the company to capture ongoing sector shifts. Notably, the "Cloud" segment now contributes an overwhelming 87% of revenue, growing 38% year-on-year and demonstrating clear strategic direction.

These strengths, combined with a new dividend program, position Western Digital as a balanced investment candidate capable of delivering both capital gains and income. The forward guidance for Q4 FY2025 anticipates continued growth, with revenue of $2.45 billion (midpoint) and further EPS improvements—even as global end-markets exhibit some volatility.

Volume and Liquidity

An average daily trading volume of approximately 9 million shares reflects deep market liquidity, a vital consideration for both institutional and retail investors seeking flexibility and price efficiency. The sizable public float (345.45 million shares) encourages stable price discovery and reduces the risk of sudden squeezes, while supporting valuation dynamics that respond rationally to fundamental developments.

Elevated and sustained trading activity during recent bullish moves further validates market confidence, suggesting that the current price structure is backed by diverse, active investor participation rather than speculative flurries. For market participants in the Philippines or wider Asia, this liquidity profile enhances ease of entry and exit even for more substantial positions.

Catalysts and Positive Outlook

Several high-conviction catalysts distinguish Western Digital’s forward outlook:

• Separation of Flash Business: By spinning off its volatile flash memory operations, Western Digital has sharpened its operating focus and improved profitability, making its earnings base more resilient and predictable.
• Cloud Storage Dominance: Strategic relationships with hyperscale cloud providers (Amazon, Microsoft, Google, Alibaba) place the company at the epicenter of secular cloud investment, a trend that is accelerating both globally and within Southeast Asia.
• AI/ML-Driven Demand: The rapid proliferation of artificial intelligence (AI), machine learning, and big-data analytics is driving a surge in demand for high-capacity, cost-effective storage solutions—the very domain where Western Digital maintains clear competitive strengths.
• Cost Leadership: The company’s ability to manufacture efficient HDDs at competitive cost positions it to benefit disproportionately from any upswing in enterprise or cloud infrastructure spending.
• Dividend Program: The new quarterly payout introduces a shareholder-friendly policy that not only rewards existing investors but makes the stock more attractive to a broader universe of income-seeking participants.
• ESG and Sustainability: Continued efforts to enhance manufacturing efficiency and reduce environmental footprint position Western Digital favorably as ESG mandates tighten, especially within global capital markets.

This lineup of catalysts, paired with consensus analyst price targets suggesting ~15% further appreciation (average target: $57.57), reinforces the stock’s constructive outlook.

Investment Strategies

For investors evaluating timing and style, Western Digital offers several avenues of strategic positioning:

• Short-term:
• Current momentum above all key moving averages presents opportunities for swing trades or tactical positions.
• Entry on minor pullbacks toward $46-48 (major support) may optimize reward/risk.
• Medium-term:
• Positive post-spin-off earnings surprise and ongoing gross margin expansion justify holding positions into the next few quarters.
• Anticipation of dividend growth and additional shareholder returns support medium-horizon conviction.
• Long-term:
• Western Digital’s transformation into a focused mass storage leader, with clear exposure to cloud buildout and AI infrastructure trends, strongly underpins a buy-and-hold strategy.
• The stock’s low forward valuation and dividend introduction make it well-suited to serve as a core holding within diversified technology or global growth portfolios, including for PH-based investors seeking global exposure.

In all scenarios, prudent risk management—anchored at support levels and attentive to earnings catalysts—is recommended, as with any technology sector investment.

Is it the Right Time to Buy Western Digital?

Western Digital stands at a compelling crossroads, combining sector-leading fundamentals, positive technical momentum, and a heightened volume/liquidity backdrop. The company’s renewed strategic focus, robust financial results, and improving capital allocation policy form the basis for an optimistic outlook as enterprise data creation and cloud infrastructure spending accelerate worldwide, including in Southeast Asia.

With an attractive forward valuation, demonstrated resilience, and clear avenues for both growth and income, Western Digital stock seems to represent an excellent opportunity for investors aiming to capture the next phase of expansion in the global data storage market. The convergence of strong technical and fundamental signals, alongside a suite of near-term and structural catalysts, justify renewed interest among both domestic and international investors.

For those seeking dynamic exposure to the ongoing digital revolution, Western Digital’s current positioning and trajectory may offer precisely the blend of growth, value, and innovation that defines the next generation of technology leaders.

How to buy Western Digital stock in PH?

Buying Western Digital (WDC) stock online is both straightforward and secure when you use a regulated broker in the Philippines. Today, investors can access U.S.-listed shares like Western Digital in just a few clicks, with the confidence that comes from using strictly regulated platforms. There are two main methods: you can either buy the actual shares (spot buying) for long-term holding and dividends, or trade via Contracts for Difference (CFDs) to speculate on price movements with leverage. Each method has distinct advantages, and we compare the main online brokers offering access to WDC further down this page.

Spot buying

A cash or spot purchase means you’re buying actual Western Digital shares, making you a part-owner entitled to dividends and voting rights. Local brokers often charge a fixed commission per order, plus potential platform fees. For investors in the Philippines, typical commission rates start at around PHP 250 (or about $5) per trade.

Example

If the Western Digital share price is $50.18 USD (approx. PHP 2,900 on a PHP/USD rate of 57.8), with a $1,000 (about PHP 57,800) investment, you can buy around 19 shares ([$1,000 - $5 fee] ÷ $50.18 ≈ 19).

• Gain scenario: If the share price rises by 10%, your shares are then worth $1,100.
• Result: That’s a $100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on Western Digital’s price without owning the underlying shares. Instead, you open a contract with the broker that pays out the difference in price (positive or negative). Fees here are different—you pay the spread (the mark-up added to the real price) and overnight financing if you keep trades open beyond a day. CFDs allow the use of leverage: you can control a larger position with less capital.

Example

You open a CFD position on WDC with $1,000 in margin and 5x leverage—giving you exposure to $5,000 worth of shares. If the stock rises by 8%, your position gains 8% × 5 = 40%.

• Result: That’s a $400 gain on your $1,000 bet (not including fees).

Final advice

Before investing, it’s crucial to carefully compare brokers’ fees, trading platforms, and conditions—these can significantly affect your results, especially for frequent traders or those using leverage. Your choice will ultimately depend on your personal goals: long-term wealth building with cash purchases, or seeking short-term opportunities using CFDs. To help you make the right decision, you’ll find a detailed broker comparator further down this page. Always invest according to your financial capacity and risk tolerance.

Our 7 tips for buying Western Digital stock

The latest news about Western Digital

Western Digital launches its first-ever dividend program, offering new income opportunities for investors in the Philippines. On May 2025, Western Digital initiated a quarterly dividend of $0.10 per share, with the first payment scheduled for June 18, 2025. This development is particularly positive for PH-based investors and funds seeking USD-denominated dividend streams from technology hardware exposure, especially given the lack of similar income opportunities among regional tech peers. The initiation of regular dividends is a strong signal of Western Digital’s improved balance sheet and management’s growing confidence in the stability of its cash flows.

Western Digital posts a robust Q3 FY2025 performance, with net profit and cloud segment growth exceeding expectations. In its April 30, 2025 report, Western Digital surpassed market forecasts by delivering non-GAAP earnings per share of $1.36 against consensus of $1.06, and highlighted 31% year-over-year revenue growth, mainly driven by a 38% surge in its cloud solutions division. This cloud business is the primary driver of growth and profit and includes contracts with major global cloud service providers, many of which are key technology enablers for hyperscale Philippine enterprises, fintechs, and BPO data centers relying on large-scale storage solutions.

The recent business separation streamlines Western Digital’s operations for greater focus on data storage innovation and cloud partnerships. With the official spin-off of its Flash memory division into SanDisk Corporation on February 21, 2025, Western Digital concentrated its efforts on hard disk drive technology and its integration into cloud architectures. This restructuring enables more dedicated R&D and business development in cloud storage, resonating with PH’s digitalization agendas and local demand for scalable and cost-efficient data solutions, notably supporting the rapid growth of cloud-based services and government digital transformation.

The company’s stock demonstrates clear bullish technical momentum, indicating investor confidence and potential regional capital inflow. As of May 27, 2025, Western Digital’s share price stands significantly above its key moving averages and exhibits a strong RSI and positive MACD, underscoring heightened bullish sentiment. The positive technical outlook, along with analyst consensus favoring "Buy" recommendations and a 15% implied upside, make WDC a potentially attractive entry point for Philippine institutional investors seeking exposure to global technology growth trends.

Leadership under Irving Tan, an executive with deep Asia-Pacific experience, strengthens Western Digital’s regional outlook and execution. The appointment of Irving Tan as CEO in late 2024 provides additional strategic resonance for Philippines-based analysts and investors. Tan’s extensive background in technology leadership across Asia-Pacific signals an organizational emphasis on growing business and partnerships in rapidly expanding Southeast Asian markets, supporting regional alliances with Philippine ICT integrators and boosting confidence in Western Digital’s capacity to serve local and regional enterprise demands effectively.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.