12 Most Undervalued Tech Stocks to Invest in Now

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2. Western Digital Corporation (NASDAQ:WDC)

Forward P/E Ratio: 9.1

1io Earnings Growth: 366.35%

Number of Hedge Fund Holders: 66

Western Digital Corporation (NASDAQ:WDC) is one of the most undervalued tech stocks to invest in now. The company is known for manufacturing storage solutions including Hard Disk Drives (HDD), Solid State Drives (SDD), and Flash Storage Drives (FSD), all of which are critical components in cloud storage and artificial intelligence.

On January 7, Evercore ISI reiterated its Outperform rating for Western Digital Corporation (NASDAQ:WDC), maintaining its price target of $85. The analyst stated that despite a decline in the average selling price of flash drives, which is anticipated to have fallen by 6% during December 2024 and is forecasted to fall an additional 3% through March 2025. The investors will likely focus on the strength of the company’s HDD business.

HDDs account for almost 90% of the data stored in public clouds indicating their robust demand. During the fiscal first quarter of 2025, Western Digital Corporation (NASDAQ:WDC) grew its cloud segment revenue by 153% year-over-year driven by higher shipments of HDDs and SDDs.

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.”

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