(Reuters) – Western Digital Corp covered Wall Street approximates for quarterly revenue as needed for its data-storage items from cloud provider, sending its shares up 9% in extensive trading on Thursday.
The AI boom has actually powered a healing in memory chips require as cloud provider develop facilities to sustain brand-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,” CHIEF EXECUTIVE OFFICER David Goeckeler claimed.
Western Digital reported first-quarter modified revenues per share of $1.78, defeating experts’ assumptions of $1.72.
Revenue from the cloud market climbed up 17% to $2.21 billion sequentially.
Earlier this month, the business claimed its venture SSD memory storage space gadget has actually been licensed to sustain Nvidia’s AI web server system.
Western Digital’s first-quarter profits was $4.10 billion, compared to quote of $4.12 billion.
The data-storage items manufacturer anticipates second-quarter profits in the variety $4.20 billion to $4.40 billion, whose mid- factor is listed below quote of $4.34 billion, according to information put together by LSEG.
It anticipates modified revenues per share in the series of $1.75 to $2.05, compared to quotes of $1.93.
Rival Seagate Technology projection positive revenue for its 2nd quarter on Tuesday, driven by substantial boost in cloud need.
(Reporting byPriyanka G in Bengaluru; Editing by Sriraj Kalluvila)
