10 Best Upside Stocks To Buy Right Now

8. Western Digital Corp. (NASDAQ:WDC)

Upside Potential as of March 10: 53.48%

Number of Hedge Fund Holders: 85

Western Digital Corp. (NASDAQ:WDC) is a leader in data storage. It provides HDDs and SSDs for diverse applications, from consumer devices like PCs and smartphones to enterprise-level data centers and AI workloads. It operates under the renowned Western Digital, SanDisk, and WD brands.

Wells Fargo’s Aaron Rakers reiterated a Buy rating on the company with an $85 price target on February 12. This sentiment came from the revenue growth potential at the company because of AI and autonomous driving, which drives the company’s HDD business. In FQ2 2025, HDD sales hit a 12-quarter high, with data center revenue reaching a record 55% of total revenue. Average HDD price rose 5% to $172.

The data storage market is expected to grow from $65 billion in 2024 to $100 billion by 2030, and Western Digital Corp. (NASDAQ:WDC) is positioned to capitalize on it. Despite a projected short-term dip in sales, the company anticipates a rebound driven by AI expansion, the 2025 Windows 10 end-of-life, and post-COVID device upgrades, alongside partnerships with major tech companies. The HDD industry’s duopoly will allow this company to increase profits as demand rises.

Parnassus Mid Cap Fund stated the following regarding Western Digital Corp. (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.”