Western Digital (WDC) Is Down 17.6% After AI-Fueled Earnings Surge And Dividend Boost - Has The Bull Case Changed?

Western Digital reported strong Q4 2026 results, with sales of US$3,747 million and net income of US$3,195 million, and declared a US$0.15 per-share dividend. The company also highlighted multi-year storage agreements with AI customers, indicating long-term demand visibility for its high-capacity storage solutions. Despite these positive developments, the article suggests that investors should remain aware of concentration risk due to Western Digital's reliance on a few hyperscale customers.