Western Digital Corporation (NASDAQ: WDC) entered its earnings report with something to prove. After a blistering rally through the first half of the year, the stock had pulled back hard, falling roughly 35% from the all-time high it set in June as investors began to question whether the AI storage boom had been overhyped.
That set the stage for a real test. Either the quarter would justify the recent weakness by revealing cracks in the story, or it would prove the doubters wrong and show that the sell-off had gone too far. As it happens, the numbers landed in the second camp, beating expectations on earnings, revenue, and guidance alike.
