11 Best Performing Data Center Stocks to Buy Now

3. Western Digital Corp. (NASDAQ:WDC)

YTD Return: 124.0%

Number of Hedge Fund Holders: 74

Western Digital Corp. (NASDAQ:WDC) is one of the best performing data center stocks to buy now. The company’s shares have risen by over 135% year-to-date, and although these gains have made existing investors richer, new recommendations are facing a valuation question.

Over the last week or so, two noticeable coverage initiations on WDC have been made, which have clearly communicated their cautious stance. These two analysts are from Roth MKM and Bernstein SocGen’s analyst Mark Newman (both with a price target of $96).

These analysts have raised concerns about competition and believe the valuation is fair, taking into account the company’s growth prospects. However, the broader consensus remains positive, with 75% of analysts holding Buy or equivalent ratings. In fact, the majority of analysts with a Buy rating have also substantially raised their price targets.

The latest among them are analysts from Mizuho and Benchmark Co., who now have price targets of $120 and $115, respectively, compared to $87 and $85 previously.

The analyst from Mizuho sees upside for Western Digital, citing tighter supply and rising prices in the NAND and HDD markets. The analyst expects further price gains into late 2025 and lifted storage sector targets, underpinning a still healthy growth outlook for the stock.

Western Digital Corp. (NASDAQ:WDC) is a leading global provider of data storage solutions, offering both hard disk drives (HDDs) and solid-state drives (SSDs) to support the consumer, enterprise, and hyperscale data center markets.