Billionaire Paul Singer’s 10 Stock Picks with Huge Upside Potential

7. Western Digital Corp. (NASDAQ:WDC)

Elliott Management’s Stake: $134.17 million

Number of Hedge Fund Holders: 85

Average Upside Potential as of May 8: 30.93%

Western Digital Corp. (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions. It offers client devices, such as hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set-top boxes. It also offers external HDD storage products in mobile and desktop form.

In FQ3 2025, the company’s Cloud end market generated $2 billion in revenue, which made up 87% of the company’s total revenue. This was also a 38% improvement 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.

While there was a 6% sequential decrease in near-line bit shipments due to customer deployment plans, the average price per unit in the cloud sector increased by 5% sequentially to $179. Western Digital Corp. (NASDAQ:WDC) has also secured long-term agreements that extend through H1 2026 with two of its largest cloud customers. On April 10, Benchmark upgraded the stock from Hold to Buy with a price target of $55 due to the company’s developments in the flash memory and nearline drive segments.

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.”