10 Best Affordable Tech Stocks to Buy According to Analysts

1) Western Digital Corporation (NASDAQ:WDC)

Forward P/E as of 23 August: 8.35x

Upside Potential: 44.52%

Expected EPS Growth This Year: Over 100%

Western Digital Corporation (NASDAQ:WDC) is a leading vertically-integrated supplier of data storage solutions, spanning across both hard disk drives (HDDs) and solid state drives (SSDs).

The emergence of the AI Data Cycle highlights a transformational period within the industry which should drive fundamental shifts throughout the end markets. This should lead to an increased need for storage and the creation of new demand drivers. In 4Q 2024, the company’s cloud segment made up ~50% of the total revenue. The sequential growth was mainly because of higher nearline shipments and pricing in HDD, together with increased bit shipments and pricing in enterprise SSDs.

The advent of AI and its data demands positively affect both HDD and flash demand. Since generative AI apps and ML need significant data storage, Western Digital Corporation (NASDAQ:WDC) should be able to capitalize on this trend. The company expects 1Q 2025 revenue in the range of $4 billion – $4.2 billion. The growth should stem from the AI Data Cycle in both Flash and HDD markets.

Western Digital Corporation (NASDAQ:WDC) appears to be well-placed for continued success with strong performance in HDD and Flash segments, and a focus on the burgeoning AI data storage market.

The company plans to capitalize on the AI super cycle, which should drive sustained demand for memory chips. This long-term trend, supported by both enterprise investments and growing consumer demand, should push memory prices upward, benefiting the company’s stock.

Cantor Fitzgerald gave an “Overweight” rating on the shares of Western Digital Corporation (NASDAQ:WDC). They issued a price target of $100.00 on 1^st August. As per Insider Monkey’s 2Q 2024 data, Western Digital Corporation (NASDAQ:WDC) was in the portfolios of 80 hedge funds.

While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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