10 Best Data Storage Stocks To Buy According to Hedge Funds

2. Western Digital Corp. (NASDAQ:WDC)

Number of Hedge Fund Holders: 66

Western Digital Corp. (NASDAQ:WDC) is a global technology leader in the design, manufacture, and sale of data storage devices and solutions. It offers a broad portfolio of products, including hard disk drives (HDDs), solid-state drives (SSDs), flash memory, and data storage platforms. It serves customers across various markets, including consumer electronics, data centers, and industrial applications.

The company recognizes the impact of the AI Data Cycle on the data storage industry and has positioned itself to capitalize on this trend. Its focus on delivering high-performance enterprise SSDs is evident in the 76% sequential growth of this segment, reaching the highest revenue level since FQ4 2022.

Its UltraSMR technology in the HDD segment is suited to address the storage demands of the AI Data Cycle. UltraSMR enables organizations to store and manage the massive datasets required for AI model training and deployment by delivering high-capacity, cost-effective storage solutions. By capitalizing on the growth opportunities presented by the AI Data Cycle, Western Digital Corp. (NASDAQ:WDC) is poised to drive future success and solidify its leadership in the data storage market.

Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) 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.”