Is WDC a good stock to buy? We came across a bullish thesis on Western Digital Corporation on Thinking Tech Stocks’s Substack. In this article, we will summarize the bulls’ thesis on WDC. Western Digital Corporation’s share was trading at $374.11 as of April 20th. WDC’s trailing and forward P/E were 35.36 and 29.50 respectively according to Yahoo Finance.
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Western Digital Corporation (WDC) has emerged as a critical enabler of the AI-driven data economy following its February 2025 separation from SanDisk Corporation, which now focuses exclusively on high-speed NAND flash. The “new” WDC is a pure-play leader in mass-capacity, low-cost hard disk drives (HDDs), serving as the essential “vault” for AI data lakes. Investors have recognized the strategic importance of its offerings, with WDC stock surging roughly 190% in 2025 as demand for cold storage to train large AI models accelerated.
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The company commands a 48% share of the Nearline exabyte market, delivering the lowest total cost of ownership to hyperscalers and cloud giants such as Amazon, Google, and Microsoft. Its UltraSMR technology enables 32TB drives by overlapping data tracks, while its rollout of HAMR—using lasers to heat the storage medium—targets 40TB+ capacities, ensuring WDC remains at the forefront of high-density storage innovation.
Vertical integration allows the company to manufacture its own heads and media, driving superior margins and operational control. With lead times for high-capacity HDDs extending to 12 months, WDC is experiencing unprecedented demand, positioning it as an indispensable partner in the AI data cycle.
As enterprises ingest, train, checkpoint, and archive massive datasets, WDC’s storage solutions provide the most cost-efficient and scalable option, making it a cornerstone of future AI infrastructure. Even amid the broader memory and storage ecosystem, WDC stands out for its unmatched capacity, profitability, and growth potential, offering investors a compelling opportunity to capitalize on the structural shift toward AI-driven data accumulation and the increasing reliance on cold storage solutions.
Previously, we covered a bullish thesis on Seagate Technology Holdings plc (STX) by fortitudelkw in January 2025, which highlighted the company’s leadership in high-capacity HDDs, HAMR technology adoption, strong cloud customer base, and positioning to benefit from the AI-driven data storage boom. STX’s stock price has appreciated by approximately 398.93% since our coverage. Thinking Tech Stocks shares a similar view but emphasizes Western Digital Corporation’s (WDC) focus on mass-capacity HDDs, vertical integration, and dominance in the Nearline exabyte market as a critical enabler of AI data lakes.
Western Digital Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held WDC at the end of the fourth quarter which was 84 in the previous quarter. While we acknowledge the risk and potential of 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 WDC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
