Western Digital rallies as AI storage demand lifts sector

Western Digital Corp stock rose 3.7% in morning trading on Tuesday as investor interest in AI-driven storage demand continued to support the technology sector.

The stock opened at $438.58 and reached a session high of $474.54 during active trading.

The momentum followed comments made Monday at the Goldman Sachs Communacopia + Technology Conference by executives from SanDisk, Western Digital's recently spun-off flash memory peer. SanDisk executives said AI inference is hitting a "memory wall," with data centers now representing the majority of NAND flash demand. Larger AI models require increasingly scalable storage solutions, according to the executives.

SanDisk also disclosed it had signed multiple strategic multi-year supply agreements to improve demand visibility. The announcement lifted sentiment across the storage sector and provided support for Western Digital shares.

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