Western Digital's entire hard disk drive production capacity for calendar year 2026 is sold out, CEO Irving Tan confirmed during the company's fiscal Q2 2026 earnings call on January 29. Firm purchase orders from the top seven customers have secured all available supply, with long-term agreements extending into 2027 for two customers and into 2028 for one. The unprecedented forward bookings stem from explosive demand driven by AI inference workloads, which generate vast amounts of data requiring cost-effective, high-capacity storage in hyperscale data centers. Cloud and enterprise customers now represent 89% of Western Digital's revenue, while the traditional consumer segment has shrunk dramatically. Analysts expect the tight supply to support continued pricing strength and margin expansion in the near term.