15 AI Stocks Taking Wall Street by Storm

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8. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Holders: 66 

Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions and stands to gain from a rise in SSD demand, particularly for AI-related tasks.

On November 26, TD Cowen analyst Krish Sankar maintained a “Buy” rating on Western Digital Corporation (NASDAQ:WDC) and set a price target of $80.00. The company’s performance and strategic positioning have led to the buy rating. According to the analysts, the company’s HDD segments reveal positive metrics, specifically superior gross and net profit margins, compared to its closest competitor STX. Moreover, the company’s strategic initiatives in research and development are also boosting its competitive edge. There are some concerns regarding the Flash business’s valuation and free cash flow, but the overall financial health and potential for price stabilization in the NAND market contribute to a positive long-term outlook. Lastly, Sankar believes the stock has the potential to reach the higher end of its valuation range.

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