Western Digital is already sold out of hard drives for all of 2026 — chief says some long-term agreements for 2027 and 2028 already in place

 Western Digital Chief Executive Officer Irving Tan said that the company has already sold out of hard drives for 2026. Tan confirmed this during the company’s Q2 2026 earnings call, where, according to the transcript shared by Investing.com, he also confirmed that there are already some long-term agreements (LTAs) in place for the next couple of years.

“As we highlighted, we’re pretty much sold out for calendar 2026. We have firm POs with our top seven customers,” the executive said. “And we’ve also established LTAs with two of them for calendar 2027 and one of them for calendar 2028. Obviously, these LTAs have a combination of volume of exabytes and price.” This announcement is on track with the report from late last year that hard drives are on backorder for two years due to massive data center demand.

The company’s VP for Investor Relations, Ambrish Srivastava, said that 89% of its revenue came from its Cloud business, while its consumer business only delivered 5%. Because of this, it would make sense for the company to focus more on enterprise clients — similar to how memory chip makers decided to focus production on the more lucrative HBMs that are in demand from hyperscalers. The cost efficiency of hard drives has especially become more apparent now that SSDs are skyrocketing to more than 16x the price of an equivalent HDD.

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However, this is going to be bad news for enthusiasts and consumers. Although many people prefer SSDs for most electronics, there is still a market for consumer hard drives, especially for use in NAS systems and long-term data storage. But the massive demand brought by the AI infrastructure buildout is causing shortages even for this component. Many HDD models have surged in pricing already, with costs jumping by an average of 46% since September 2025.

PC hardware shortages are only getting worse as the AI race continues. What started as a memory and storage chip shortage has soon spread into GPUs and is now hitting hard drives. Most consumers won’t feel the HDD pinch as it’s mostly a niche product in recent years, but we’re afraid that other parts, components, and product categories are going to follow suit with the price increases and supply shortages in the coming months. 

https://www.tomshardware.com/pc-components/hdds/western-digital-is-already-sold-out-of-hard-drives-for-all-of-2026-chief-says-some-long-term-agreements-for-2027-and-2028-already-in-place