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Western Digital rallies as hard drive demand and supply tighten
Columbia Threadneedle said its Global Technology Fund saw Institutional Class shares gain 50.3% in the second quarter, helping drive outperformance versus its benchmark.
Columbia Threadneedle’s Columbia Seligman Global Technology Fund highlighted Western Digital Corp. in its second quarter 2026 investor letter, pointing to a continued surge in the data storage company’s shares as hard drive demand strengthened and supply tightened.
The fund reported that its Institutional Class shares returned 50.34% during the quarter, compared with a 33.65% gain in the MSCI World Information Technology Index. In the letter, Columbia Threadneedle attributed relative performance to stock selection across semiconductors and technology hardware and software, while noting that other sector exposure detracted.
Technology stocks rallied in the letter’s view as concerns about the Iran conflict eased and as AI infrastructure spending boosted demand for components ranging from semiconductors and memory to networking, servers, and power solutions. The fund also said it expects AI and data-centre investment to remain strong, supported by improving software bookings, cloud consumption, and customer spending.
Columbia Threadneedle acknowledged risks including geopolitical uncertainty, higher interest rates, and the scale of AI investment potentially pressuring valuations and free cash flow. Western Digital closed on July 27, 2026 at $497.92 per share, according to the letter coverage, after a one-month return of -31.70% and a 517.82% gain over 52 weeks.