Accelerated Demand Lifted Western Digital Corp (WDC) in Q4

Night Watch Investment Management, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Despite experiencing high volatility in individual stocks during Q4, the fund finished the quarter approximately flat. Overall, the firm is pleased with how 2025 unfolded. Like 2024, the results were broad-based and did not rely on any single security.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Night Watch Investment Management highlighted stocks such as Western Digital Corporation (NASDAQ:WDC). Western Digital Corporation (NASDAQ:WDC) offers data storage devices and solutions based on hard disk drive (HDD) technology. On January 6, 2026, Western Digital Corporation (NASDAQ:WDC) stock closed at $219.38 per share. One-month return of Western Digital Corporation (NASDAQ:WDC) was 20.57%, and its shares gained 353.21% of their value over the last 52 weeks. Western Digital Corporation (NASDAQ:WDC) has a market capitalization of $75.202 billion.

Night Watch Investment Management stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its fourth quarter 2025 investor letter:

“Western Digital Corporation (NASDAQ:WDC), a manufacturer of hard-disk drives, benefited from a large memory shortage driven by investments in AI data centers. The shares are up >200% since our purchase and we have been scaling down our position, given that memory cycles have historically been very short and very violent.”

Is Western Digital Corporation (WDC) The Best Hardware Stock To Buy Now?

Western Digital Corporation (NASDAQ:WDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 84 hedge fund portfolios held Western Digital Corporation (NASDAQ:WDC) at the end of the third quarter, up from 74 in the previous quarter. While we acknowledge the risk and potential of Western Digital Corporation (NASDAQ:WDC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Western Digital Corporation (NASDAQ:WDC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Western Digital Corporation (NASDAQ:WDC) and shared stocks with double-digit Gains. Night Watch Investment Management initiated a position in Western Digital Corporation (NASDAQ:WDC) in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.