Western Digital (WDC) Stock Soars 17% After Nvidia’s CES Storage Bombshell

Nvidia just dropped storage news at CES that sent Western Digital shares rocketing—proof that when tech giants move, markets scramble.

Storage Gets the AI Treatment

Forget boring hard drives. Nvidia's announcement reframes storage as a critical AI infrastructure play. It's not about holding data anymore; it's about fueling the next generation of models. That shift in perception is pure rocket fuel for a sector Wall Street often treats like a commodity.

The Ripple Effect in Tech

This isn't just a win for WDC. It's a signal flare. When a titan like Nvidia points its spotlight at a specific hardware niche, the entire ecosystem feels the heat. It validates roadmaps, attracts investor attention, and creates a halo effect for anyone in the adjacent supply chain. Suddenly, storage isn't a back-office cost—it's a strategic asset.

A Cynical Take on the Rally

Let's be real for a second. A 17% pop on an announcement? That's the market doing what it does best: pricing in hype at light speed before the first product even ships. It's the classic 'buy the rumor, sell the news' playbook, but this time, the rumor came straight from the keynote stage. The real test is whether the revenue follows the rhetoric or if this is just another case of analysts getting excited about slideshows.

The bottom line? In today's market, a strategic partnership announcement can be worth more than a quarter of solid earnings. For now, Western Digital is riding the wave. The question is how long the tide stays in.

TLDR

• Western Digital stock surged 16.8% to $219.38 after hours following Nvidia CEO Jensen Huang’s CES presentation on new storage technology
• Huang introduced “context memory storage” for the Vera Rubin chip platform, designed to speed up AI chatbot responses
• Storage sector rallied broadly with SanDisk up 27%, Seagate up 14%, and Micron up 10%, all hitting record highs
• SanDisk launched rebranded Optimus NVMe solid-state drives at CES, targeting AI PC and workstation builders
• U.S. labor market data due Wednesday and Friday could influence tech stock momentum and rate expectations

Western Digital Corp shares climbed 16.8% to $219.38 in after-hours trading Tuesday. The stock touched $221.16 earlier in the session.

Western Digital Corporation, WDC

The rally came after Nvidia CEO Jensen Huang spoke at CES in Las Vegas. He unveiled a next-generation chip platform called Vera Rubin.

Huang also introduced a storage technology he called “context memory storage.” The feature aims to help AI chatbots handle long questions and conversations more quickly.

Western Digital makes hard disk drives for cloud, client and consumer markets. Investors have used the stock as a way to play AI infrastructure spending.

The company’s cloud business serves public and private cloud environments. It also sells directly to end customers.

Storage Sector Catches Fire

Tuesday’s MOVE wasn’t isolated to Western Digital. SanDisk jumped more than 27% in the same session.

Seagate Technology gained 14%. Micron ROSE 10%.

All four stocks hit record highs, according to Reuters. “I think we’re going to have a very strong earnings season for Big Tech,” said Jed Ellerbroek, a portfolio manager at Argent Capital.

Ellerbroek expects capital spending estimates to climb again. That view reflects broader Optimism around AI data center buildouts.

SanDisk used CES to rebrand its internal NVMe solid-state drives. The new line is called SanDisk Optimus.

The top GX PRO tier targets developers, professionals and gamers building AI PCs and workstations. The company plans to roll out the updated branding to select retailers in the first half of 2026.

Recent Guidance and Separation

Western Digital’s most recent guidance dates to October. CEO Irving Tan said the firm was performing well in a “strong demand environment driven by growth of data storage in the cloud.”

CFO Kris Sennesael projected fiscal second-quarter revenue of about $2.9 billion at the midpoint. He also guided for non-GAAP EPS of roughly $1.88.

The company completed the separation of its flash unit into SanDisk on Feb. 21, 2025. That split gave investors two pure-play names in the storage market.

But the rapid price gains leave less cushion if demand softens. Morningstar analyst William Kerwin said Nvidia’s storage platform “would add more SSD storage to AI infrastructure to improve model speed.”

He warned that current high prices may not hold over the longer term. That caution reflects concerns about valuation stretched by fast-moving sentiment.

Traders will now watch U.S. labor market data for the next catalyst. The Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey on Wednesday, January 7.

The December Employment Situation report follows on Friday, January 9. Both reports can shift rate expectations and influence high-multiple tech trades like Western Digital.