Despite the rally, short interest has remained relatively flat—indicating this is not a short squeeze-driven move. The steady climb in WDC’s stock price has consistently pushed its Short Squeeze Score into the 70s, signaling elevated—but unrealized—short squeeze risk.

Reasons for the rally include

Samsung’s decision to cut chip production has created a significant tailwind for WDC.

The company is benefiting from strong investor sentiment surrounding AI adoption and data storage demand.

Analysts have been consistently revising earnings estimates higher, reflecting improving fundamentals.

Momentum traders have entered the stock, amplifying the rally’s strength

Realized volatility has remained low throughout WDC’s consistent uptrend, while implied volatility has risen in tandem with its Short Squeeze Score—suggesting options markets are pricing in potential turbulence.

Active institutional holders increased their positions as WDC reversed course, while passive ownership declined with the price surge—underscoring renewed confidence in WDC’s long-term value proposition.

WDC spun off SNDK in February 2025 on a 1-for-3 basis. Since April, SNDK has surged nearly 100%—mirroring WDC’s bullish trajectory.

Investors need to be aware of squeeze risk potential, especially when the stock trades higher. However it has not happened so far.

Want to know more? Access this data in real time using S3’s BLACK APP & BLACK MAP

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.

Japan

Stocks