Billionaire Larry Robbins’ 10 Stock Picks with Huge Upside Potential

7. Western Digital Corp. (NASDAQ:WDC)

Glenview Capital’s Stake: $41.67 million

Number of Hedge Fund Holders: 85

Average Upside Potential as of May 8: 30.93%

Western Digital Corp. (NASDAQ:WDC) designs, manufactures, and sells data storage devices and solutions. It offers a broad portfolio of products, including hard disk drives (HDDs), solid-state drives (SSDs), flash memory, and data storage platforms. It serves customers across various markets, including consumer electronics, data centers, and industrial applications.

The company experienced a 5% sequential decline in its FQ3 2025 revenue. The consumer segment, client segment, and cloud segment each fell by 13%, 2%, and 4%, respectively. Earlier in February, Western Digital completed the separation of the Flash business unit (Sandisk), which has introduced a transition period and potential instability. External factors, such as the current global economic and geopolitical uncertainty and shifting trade dynamics, also influence the company’s business operations.

However, Western Digital Corp.’s (NASDAQ:WDC) Cloud end market generated $2 billion in revenue, which made up 87% of the company’s total revenue. This was up 38% year-over-year, which was fueled by the increasing need for mass storage solutions driven by the growth of data due to enterprise workloads and the surge in AI-generated content.

Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2024 investor letter:

“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”