Western Digital Announces $4 Billion Stock Buyback, Shares Rise Over 7% on AI Server Demand
The storage sector is gaining momentum, with Western Digital (NASDAQ:WDC) rising over 7% and SanDisk (NASDAQ:SNDK) climbing 4.55%, both hitting new all-time highs. The surge comes after Western Digital announced that its board had approved an additional $4 billion for stock buybacks, driven by the soaring demand for its memory chips in AI servers.
UBS analysts forecast that meaningful supply relief in the global storage industry will likely not occur until around 2028. Until then, structural demand from AI data center construction is expected to continue to strengthen the Memory supply chain, enhancing both market sentiment and pricing power. In the short term, UBS suggests focusing on the two near-monopoly HDD manufacturers—Seagate and Western Digital. The analysts view both companies as short-term trading themes that benefit from industry consolidation, controlled supply, and price and profit elasticity resulting from cyclical demand recovery.
At the same time, Intel (NASDAQ:INTC) CEO Pat Gelsinger has reported discussions with two major memory suppliers, both of which confirmed that “relief will not come until at least 2028.” The massive expansion of AI infrastructure continues to drive up demand for memory chips, squeezing available supply from traditional equipment.
PepsiCo’s Q4 Profit Soars Nearly 60%, Shares Rise 5%, Hitting One-Year High
Global food and beverage leader PepsiCo (NASDAQ:PEP) recently reported stronger-than-expected fourth-quarter revenues and profits, driven by robust demand in international markets. The company also announced a $10 billion stock buyback plan and reaffirmed its profit growth target for 2025.
Demand for local-flavored snacks and sodas in countries like India and Brazil has been a key driver of sales growth. Meanwhile, PepsiCo is undertaking a comprehensive adjustment of its product lineup in the U.S. to cater to evolving consumer tastes.
In response to consumer complaints about high prices, PepsiCo is planning to reduce prices of products such as Lay’s chips, Doritos, and Cheetos by up to 15%, while maintaining product sizes.
GE Vernova and Xcel Energy Form Strategic Alliance, Shares Rise Over 3%
GE Vernova (NYSE:GEV) rose over 3%, hitting a new all-time high following a strategic alliance agreement with Xcel Energy (NASDAQ:XEL). The two companies signed a milestone agreement aimed at strengthening their long-term partnership and advancing a reliable, economical, and sustainable energy future.
The agreement will support Xcel Energy’s power generation and grid projects through the 2030s, leveraging GE Vernova’s extensive range of equipment and services. By enhancing supply certainty, operational flexibility, and cost predictability, this partnership is expected to deliver significant benefits to customers and stakeholders. Additionally, GE Vernova completed its acquisition of Prolec GE, accelerating the growth trajectory of its electrification division.
GE Vernova also revealed its new GridBeats APS (Automation and Protection System), which aims to significantly reduce the number and types of equipment used in power substations to meet the demand for grid digitalization solutions from utility companies.