Western Digital CFO Kris Sennesael refuted the "peak AI demand" theory during the Q1 earnings call on October 22, stating that hyperscale cloud service provider clients continue to expand capital expenditures and are discussing supply and demand for 2030-2031. The company's capital expenditures more than tripled year-over-year, primarily for expanding high-capacity hard drive production, with spending expected to be slightly above the 4% to 6% of revenue range average over the next two years. Although the company projected Q2 adjusted EPS could reach up to $6 (above analysts' expectation of $4.80) and raised its quarterly dividend by 17%, the aggressive capital expenditure plan still raised market concerns about the sustainability of AI data center investments, leading Western Digital's stock to close down approximately 3% on Friday. Sennesael added that even if AI development slows, it would help the company catch up with existing demand gaps.