Western Digital anticipates HDD price increase by 2028

Western Digital (WD) announced that its production line for hard disk drives (HDDs) for 2026 is already fully booked, primarily by companies in the artificial intelligence (AI) sector. This information was confirmed by the company's CEO, Irving Tan, during a financial results meeting.

The rising demand for HDDs, driven by AI companies, is expected to lead to price increases. WD has secured Long-Term Agreements (LTAs) with at least two more clients for 2027 and 2028. The company reports that 89% of its revenue comes from cloud services, while only 5% is allocated to consumer products.

As the data center market prioritizes the storage of large volumes of data, HDDs remain relevant despite not being the fastest components. Meanwhile, the adoption of SSDs in home computers is increasing, although prices for these components have also risen due to AI demand.

The trend suggests that other companies will follow WD's lead, prioritizing lucrative contracts with the AI sector over home consumers. This could lead to even higher prices in the near future.

With component shortages and high demand for AIs, it is recommended to purchase hard drives and SSDs before prices rise further. The outlook is for continued inflationary pressure on computer components.