Opinion: AI storage demand shows no signs of slowing, and a cooldown would instead help bridge the supply gap.

BlockBeats news, October 24: Western Digital CFO Kris Sennesael stated that the momentum of hyperscale cloud service provider customers expanding capital expenditures remains unwavering, and the company has already discussed storage supply demand for 2030 to 2031 with them. He noted that even if AI development momentum slows, it could help the company close the current supply-demand gap.

Western Digital's latest quarterly results exceeded expectations, and the company raised its earnings guidance, forecasting adjusted earnings per share of up to $6 in the second fiscal quarter, above the analyst average estimate of $4.80, while also raising its quarterly dividend by 17%. However, the company's capital expenditures more than tripled year-over-year, putting pressure on free cash flow margins and sparking market concerns about the sustainability of AI data center investment. Western Digital's stock closed down about 3% on Friday.