In March 2026, Open Quantum Design announced an open-source Error Correction Working Group with QuScript and Western Digital to advance quantum error correction on its full-stack trapped-ion quantum computer, aiming to develop shared standards for fault-tolerant quantum systems.
This collaboration places Western Digital’s long-standing expertise in large-scale data reliability and error correction at the center of early efforts to make quantum computing practical for real-world data-intensive applications.
We’ll now examine how concerns about Google’s memory compression advances and Western Digital’s quantum error-correction role may reshape its investment narrative.
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To own Western Digital, you need to believe that AI and cloud demand keep driving high-capacity storage, and that the company can stay central to that buildout despite customer concentration and technology shifts. Google’s TurboQuant memory compression and Western Digital’s new role in quantum error correction both speak directly to that core question, but neither clearly changes the near term catalyst of hyperscaler HDD adoption or the key risk of dependence on a handful of large buyers.
The most relevant recent announcement here is Google’s TurboQuant launch, which briefly hit memory and storage stocks as investors questioned how much hardware demand AI really requires. That sits in tension with Western Digital’s AI storage roadmap, including 40TB UltraSMR drives in qualification with cloud customers, which many see as a near term driver of mix and margin, pending actual deployment and customer uptake.
Yet, while this sounds encouraging for Western Digital today, investors should still be aware of how concentrated hyperscale demand could…
Read the full narrative on Western Digital (it’s free!)
Western Digital’s narrative projects $11.9 billion revenue and $2.2 billion earnings by 2028. This requires 7.6% yearly revenue growth and an earnings increase of about $0.6 billion from $1.6 billion today.
Uncover how Western Digital’s forecasts yield a $321.00 fair value, a 28% upside to its current price.
Some of the most optimistic analysts were assuming Western Digital could reach about US$26.1 billion of revenue and US$7.3 billion of earnings by 2029, which is far more upbeat than consensus and treats today’s AI storage demand and buyer concentration as springboards rather than stress points, but Google’s compression advances and Western Digital’s quantum work could still shift how realistic that upside story looks.
