20 Best Data Center Stocks to Buy According to Billionaires

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9. Western Digital Corp. (NASDAQ:WDC)

Number of Billionaire Investors: 15

Billionaire Holdings: $710 million

Number of Hedge Fund Holders: 85

Western Digital Corp. (NASDAQ:WDC) is a prominent developer and manufacturer of data storage devices and solutions. The company’s product range includes hard disk drives (HDDs), solid-state drives (SSDs), and external storage systems tailored for both consumer and enterprise markets. Western Digital’s storage solutions find applications in personal computing, data centers, and cloud storage services, meeting the increasing global demand for reliable and high-capacity data storage.

In its Q2 2025 earnings, Western Digital (NASDAQ:WDC) showcased impressive results in the HDD segment, with data center revenue hitting record highs, thanks to its cutting-edge Ultra SMR technology. The company’s long-standing relationships with major cloud providers and enterprises position the company well to capitalize on the ongoing AI-driven data surge. Looking ahead, although demand from data centers and mobile markets is expected to remain robust in Q3, the company expects that overall bit shipments may decline due to weaker demand in PC OEM and consumer markets. The first half of 2025 is anticipated to experience inventory adjustments, but a recovery is expected in the second half, fueled by AI-driven PC adoption during the Windows refresh cycle.

On March 7, a Cantor Fitzgerald analyst lowered its price target on Western Digital (NASDAQ:WDC) to $65 from $95 while maintaining an Overweight rating. The analyst sees substantial upside potential after the completion of the spin-off of the NAND business. He remains optimistic about industry tailwinds and company-specific growth drivers but acknowledges risks such as potential oversupply, pricing pressure affecting profitability, and ongoing industry cyclicality.

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