11 Trending AI Stocks on Latest News and Ratings

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3. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Holders: 66

Western Digital Corporation (NASDAQ:WDC) designs, produces, and markets data storage solutions, providing high-capacity, high-performance storage throughout the six stages of the AI data lifecycle.

On December 19, Morgan Stanley reduced its price target for Western Digital (NASDAQ:WDC) from $100 to $93 while maintaining an Overweight rating. Following Micron’s weaker-than-expected Q2 revenue guidance, largely attributed to a drop in NAND revenue, the analyst adjusted estimates and expects AI growth to face challenges due to weakness in commodity markets.

Previously, Benchmark analyst Mark Miller downgraded Western Digital to Hold from Buy, citing several concerns. They include weakening NAND prices due to customer inventory adjustments, slow demand in industrial and automotive markets, weak Q2 guidance from Micron, and a declining share in the NAND market. As a result, the firm lowered its FY25 forecast for non-GAAP net income to $7.57 per share and sales to $16.7 billion.

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