15 Most Promising Technology Stocks to Buy Now

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6. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Funds: 66

Potential Upside: 18%

Western Digital Corp. (NASDAQ:WDC) is a leading developer and manufacturer of data storage devices and solutions. The company’s product lineup encompasses hard disk drives (HDDs), solid-state drives (SSDs), and external storage systems designed for both consumer and enterprise markets. Western Digital’s storage solutions are utilized in a variety of applications, including personal computing, data centers, and cloud storage services, addressing the growing global need for reliable and high-capacity data storage.

Western Digital Corp. (NASDAQ:WDC) hosted its Investor Day on February 12, outlining its growth potential amid increasing storage demand. The company projects that installed cloud storage will expand at a 23% compound annual growth rate (CAGR) between 2024 and 2028, reaching 19.2 zettabytes. Management estimates the total addressable market for nearline hard disk drives (HDDs) at $22.6 billion, with $5.5 billion driven by AI-related demand.

Reflecting the optimistic outlook presented at the event, an analyst at Cantor Fitzgerald reaffirmed an Overweight rating on Western Digital Corp. (NASDAQ:WDC) with an unchanged price target of $95. The analyst pointed to SanDisk’s latest financial model and quarterly guidance, as well as anticipated supply shortages expected by the fourth quarter of 2025. Additionally, they emphasized the potential value unlocked by the planned separation of the company’s NAND business, arguing that the current valuation does not fully account for the worth of the NAND segment. Notably, the company has officially spun off its flash business, creating two independent, publicly traded entities, with the newly formed company operating as SanDisk Corp. (NASDAQ:SNDKV).

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