Top 10 Undervalued Tech Stocks to Buy According to Hedge Funds

3. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Investors: 66

Forward P/E Ratio as of January 13: 7.89

Western Digital Corporation (NASDAQ:WDC) is a leading technology company that specializes in the development, manufacture, and distribution of data storage solutions. The company offers a comprehensive portfolio of hard disk drives (HDDs), solid-state drives (SSDs), and other data storage technologies. Western Digital Corporation (NASDAQ:WDC) serves a diverse range of end markets, including data centers, cloud computing, consumer electronics, and enterprise applications.

Western Digital Corporation (NASDAQ:WDC) is executing a strategic plan to separate its Flash and HDD businesses, a move aimed at unlocking shareholder value and enhancing operational focus. The company has completed the soft-spin phase, during which it has successfully separated its systems and processes into two distinct stacks. This initiative is designed to ensure that both businesses can operate independently. The separation is expected to be completed by the end of the second quarter of fiscal 2025.

In the HDD segment, Western Digital Corporation (NASDAQ:WDC) is leveraging its UltraSMR (Shingled Magnetic Recording) technology to maintain its leadership position. UltraSMR enables the company to produce the industry’s highest-capacity hard drives, offering unmatched reliability, quality, and performance. The company recently launched the 32 TB UltraSMR and 26 TB CMR drives, which are the world’s first commercially available hard drives with 11 disks. The adoption of UltraSMR by key cloud customers is expanding, and the company expects this technology to drive continued gross margin improvement and revenue growth.