Western Digital has sold out its entire 2026 production capacity for hard disk drives (HDDs). Immense demand from top artificial intelligence and cloud infrastructure customers drove the supply exhaustion.
CEO Irving Tan confirmed the company secured firm purchase orders with its seven largest clients. Long-term agreements extend into 2027 and 2028 for certain customers to lock in future revenue streams.
The cloud segment now constitutes 89% of Western Digital’s total revenue. Mass-capacity storage needs for AI applications pushed HDD prices to two-year highs. This supply shortage suggests potential constraints for other sectors, including the consumer storage market.