We recently compiled a list of the Top 10 AI News and Ratings You Probably Missed. In this article, we are going to take a look at where Western Digital Corporation (NASDAQ:WDC) stands against the other AI stocks.
As per a CNBC report, billionaire investor Steve Cohen remains confident in the long-term potential of artificial intelligence, despite recent volatility. He views AI as a transformational shift that could take 10 to 20 years to fully unfold, which will impact businesses and daily life. Cohen acknowledged that the AI market may experience ups and downs, with periods of doubt fueled by misinformation and uncertainty. His comments followed a major sell-off in U.S. tech stocks, triggered by the competitive advancements of the Chinese startup DeepSeek. Despite this, Cohen’s firm plans to raise $1.5 billion for an AI-focused hedge fund to take advantage of the sector’s growth.
Embracing the AI Future in the U.S.
Steve Cohen’s support for AI’s long-term growth and President Donald Trump’s recent push for rapid AI infrastructure development highlight the U.S. emphasis on dominating the global AI race. However, Cohen stresses a more measured approach while Trump favors fewer regulatory constraints to accelerate progress.
In his first days back in office, Trump reversed Biden’s executive order on AI, removing key safety and transparency measures for AI development, Bloomberg reported. Trump introduced a $100 billion joint venture with SoftBank, OpenAI, and Oracle, focused on AI infrastructure like data centers. He emphasized reducing environmental regulations, which could relax clean energy requirements for powering AI operations. While tech leaders expressed optimism about Trump’s pro-tech stance, experts warned about the risks of unregulated AI growth. Trump’s focus on outpacing China in AI development could shift U.S. policy toward faster, less regulated progress, raising concerns about long-term consequences, the report stated.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A data center filled with racks of hard disk drives and solid state drives.
Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 66
Western Digital Corporation (NASDAQ:WDC) designs and sells data storage solutions for various applications globally.
Western Digital (NASDAQ:WDC) reported its FQ2 2025 results on January 29. The second quarter revenue reached $4.29 billion, reflecting a 5% sequential increase. Cloud revenue grew by 6%, while Client revenue declined by 3%, and Consumer revenue rose by 14%. GAAP EPS for the quarter was $1.63, with non-GAAP EPS at $1.77. For the fiscal third quarter of 2025, the company expects revenue between $3.75 billion and $3.95 billion, with non-GAAP EPS projected between $0.90 and $1.20. David Goeckeler, Western Digital CEO said:
“We expect that our strong performance in HDD and our strategic approach to managing our Flash business within the New Era of NAND will allow each company to capture the growing demand for storage driven by the AI Data Cycle.”
Overall WDC ranks 3rd on our list of the AI stocks you probably missed. While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WDC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
