10 Best Cheap Technology Stocks To Buy According to Analysts

8. Western Digital Corp. (NASDAQ:WDC)

Forward P/E Ratio: 11.17

Average Upside Potential: 33.77%

Number of Hedge Fund Holders: 66

Western Digital Corp. (NASDAQ:WDC) develops and sells data storage devices and solutions globally. Its portfolio spans client devices (HDDs and SSDs for PCs, gaming, and mobile), enterprise solutions (HDDs, SSDs, and platforms for servers and AI workloads), and consumer storage (external HDDs/SSDs, removable cards, USB drives, and wireless products).

On February 12, Wells Fargo analyst Aaron Rakers reiterated a Buy rating on the company with an $85 price target. For this sentiment, rakers cited expected revenue growth from increased data storage demand, AI, and autonomous driving advancements. He projected a total addressable market growth from $65 billion in 2024 to $100 billion by 2030.

The company’s HDD business is booming because of the increasing need for data storage in areas like AI and autonomous driving. In FQ2 2025, HDD revenue hit $2.4 billion, a 9% jump sequentially, and a 76% jump year-over-year. Demand for its high-capacity drives is soaring. The company shipped a record 154 exabytes of nearline HDDs, with growth in exabytes shipped up both sequentially and year-over-year. This, combined with higher average prices per unit, led to record gross margins for the HDD segment.

Parnassus Mid Cap Fund re-initiated a position in Western Digital Corp. (NASDAQ:WDC), believing that its earnings potential is underestimated due to the growth of AI and its attractive valuation. It stated the following in its Q2 2024 investor letter:

“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”