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Western Digital tops quarterly profit estimates on demand from cloud computing customers
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Western Digital tops quarterly profit estimates on demand from cloud computing customers
Oct 26, 2024 9:42 PM

Oct 24 (Reuters) - Western Digital Corp ( WDC ) topped

Wall Street estimates for quarterly profit on demand for its

data-storage products from cloud service providers, sending its

shares up 9% in extended trading on Thursday.

The AI boom has powered a recovery in memory chips demand as

cloud service providers build infrastructure to support new

applications.

"With the continued proliferation of the AI Data Cycle, our

Flash and HDD product portfolios are well-positioned to

capitalize on significant opportunities as adoption continues to

grow," CEO David Goeckeler said.

Western Digital ( WDC ) reported first-quarter adjusted earnings per

share of $1.78, beating analysts' expectations of $1.72.

Revenue from the cloud market climbed 17% to $2.21 billion

sequentially.

Earlier this month, the company said its enterprise SSD

memory storage device has been certified to support Nvidia's ( NVDA )

AI server system.

Western Digital's ( WDC ) first-quarter revenue was $4.10 billion,

compared with estimate of $4.12 billion.

The data-storage products maker expects second-quarter

revenue in the range $4.20 billion to $4.40 billion, whose mid-

point is below estimate of $4.34 billion, according to data

compiled by LSEG.

It expects adjusted earnings per share in the range of $1.75

to $2.05, compared with estimates of $1.93.

Rival Seagate Technology ( STX ) forecast upbeat profit for

its second quarter on Tuesday, driven by significant increase in

cloud demand.

(Reporting by Priyanka.G in Bengaluru; Editing by Sriraj

Kalluvila)

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