15 Best Performing AI Stocks Heading into 2026

2. Western Digital Corporation (NASDAQ:WDC)

Year-to-Date Performance: 237.27%

Number of Hedge Fund Holders: 84

Western Digital Corporation (NASDAQ:WDC) is one of the best-performing AI stocks heading into 2026. On November 20, Bank of America Securities reiterated its Buy rating on Western Digital Corporation (NASDAQ:WDC) and raised the price target from $170 to $197.

Previously, on October 31, TD Cowen had also increased its price target on Western Digital Corporation (NASDAQ:WDC) from $90 to $200 and kept a Buy rating.

TD Cowen’s analysis indicates that the outlook for the hard disk drive (HDD) industry remains positive. The research firm also noted that Western Digital Corporation (NASDAQ:WDC) reported “flawless” results. TD Cowen sees more growth potential for the stock as the company’s business visibility extends into 2027.

The research firm also noted that Western Digital Corporation (NASDAQ:WDC) could achieve a cyclical high gross margin of over 50%. This compares to about 31% in the previous cycle in 2021.

Additionally, according to a report by Reuters on October 31, JPMorgan analysts pointed out that Western Digital Corporation (NASDAQ:WDC) has secured purchase orders that extend through the calendar year 2026 with five of its biggest customers. This suggests that these customers are not willing to risk running out of storage capacity as “AI-related demand continues to march higher.”

Western Digital Corporation (NASDAQ:WDC) is an American company that manufactures hard disk drives and other data storage products.