TREE NEWS update: Western Digital CFO Kris Sennesael rejected concerns that AI spending has peaked, saying data storage demand is still growing after the company’s capital expenditure plan unsettled investors. “Our customers, especially hyperscalers, have not wavered,” he said on Thursday’s earnings call, adding they are expanding capex and extending supply discussions into 2030 and 2031. Western Digital expects capex to average 4% to 6% of revenue over the next five years, with spending “moderately” higher over the next two.
Western Digital CFO Says AI Storage Demand Has Not Peaked
AI take
The CFO's pushback matters less as a denial of a peak than as evidence of how far out hyperscaler planning now runs: supply conversations stretching into 2030 and 2031 imply procurement horizons well beyond a normal cycle. That shifts the debate from whether AI demand is real to whether storage capacity can be financed and built fast enough, which is why the capex plan itself rattled investors. The tension between elevated near-term spending and a modest long-run average is the thing to watch.
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