According to Western Digital, one of the world’s largest hard drive manufacturers, the company has already sold out of its storage capacity for 2026, while there are still more than 10 months left in the year.
“Our complete preparations have been done for calendar 2026,” Said Western Digital CEO Irving Tan in the company’s most recent quarter earnings call.
Tan shared that most of the storage space is allocated to its “top seven customers”. Three of these companies already have agreements with Western Digital for 2027 and even 2028.
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Additionally, the incentive for these hardware companies to prioritize the average consumer is also diminishing. According to Western Digital, due to increased demand from its enterprise customers, the consumer market now accounts for only 5 percent of the company’s revenue.
As the industry’s growth accelerates, AI companies are eating up computer hardware. The prices of products ranging from computer processors to video game consoles are skyrocketing due to these AI companies destroying supply chains.
The tech industry is already experiencing lack of memory Due to demand from AI companies. PC manufacturers have been forced Increase RAM prices Almost on a regular basis because shortages persist. Video game console manufacturers like Sony also have Allegedly Consideration is being made to push the next PlayStation launch beyond the planned 2027 release, in the hopes that AI-related hardware shortages will be resolved by then.
This latest news from Western Digital seems to indicate that the ever-increasing demand from AI companies for memory and storage will continue to grow, with no end in sight. Unless, of course, investors decide accommodate There is a fear that the promises of AI will not be fulfilled. But, for now at least, shortages – and rising prices for consumers – will continue.
Subject
artificial intelligence
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