15 Best Hardware Stocks According To Goldman Sachs

5. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Shareholders In Q1 2024: 65

Western Digital Corporation (NASDAQ:WDC) is a hardware company that makes and sells storage devices. The average of 21 analyst share price targets for the stock is $90.32 and the shares are rated Buy on average. Western Digital Corporation (NASDAQ:WDC)  also makes advanced NAND storage devices, and these were at the center of a bullish note by Susquehanna in June 2024. The firm raised Western Digital Corporation (NASDAQ:WDC)’s share price target to $88 from $80; however, it kept a Neutral rating on the shares. Susquehanna shared NAND selling prices can jump in the future, and it added that Western Digital Corporation (NASDAQ:WDC) is well positioned to capture the market.

Western Digital Corporation (NASDAQ:WDC)’s forward price to earnings ratio of 12.61 is lower than the market’s 21. This implies that investors might be looking elsewhere for growth. Commenting on its NAND products during the latest earnings call, management shared:

Our portfolio strategy to commercialize ePMR, OptiNAND and UltraSMR technologies in advance of our transition to HAMR, has proven to be the winning strategy and enables us to deliver to customers the industry’s highest capacity and leading TCO drives, all of which can be produced at scale with controlled costs. We are confident that our product strategy, which combines UltraSMR technology with upcoming advancements in nearline drives is enabling Western Digital to deliver best-in-class gross margin in HDDs all at a time when AI is emerging as another growth engine for the industry.