Is Western Digital Corp (WDC) Benefitting From AI Spending?

2 weeks ago 8

Soumya Eswaran

Fri, December 5, 2025 astatine 8:23 AM CST 3 min read

Night Watch Investment Management, an concern absorption firm, released its third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 3rd quarter, the money LP appreciated by 4.28% nett of fees, and YTD, its show stood astatine 25.88%. The portfolio continued its beardown show successful the quarter. The marketplace besides experienced a beardown betterment successful the quarter. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Night Watch Investment Management highlighted stocks specified arsenic Western Digital Corporation (NASDAQ:WDC). Western Digital Corporation (NASDAQ:WDC) offers information retention devices and solutions based connected hard disk thrust (HDD) technology. The one-month instrumentality for Western Digital Corporation (NASDAQ:WDC) was -1.20%, and its shares gained 199.80% implicit the past 52 weeks. On December 04, 2025, Western Digital Corporation (NASDAQ:WDC) banal closed astatine $161.00 per share, with a marketplace capitalization of $55.19 billion.

Night Watch Investment Management stated the pursuing regarding Western Digital Corporation (NASDAQ:WDC) successful its 3rd 4th 2025 capitalist letter:

"We initiated 2 positions successful tech that payment from AI-related spending. Western Digital Corporation (NASDAQ:WDC) became a axenic play connected hard disk drives aft it spun disconnected its subsidiary Sandisk. The HDD manufacture has transformed into a duopoly wherever WDC and Seagate look anxious to power supply, portion request for retention capableness is increasing rapidly connected the backmost of information halfway investments.

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

Western Digital Corporation (NASDAQ:WDC) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge money portfolios held Western Digital Corporation (NASDAQ:WDC) astatine the extremity of the 3rd quarter, which was 74 successful the erstwhile quarter. In the archetypal 4th of fiscal 2026, Western Digital Corporation (NASDAQ:WDC) reported gross of $2.8 billion, up 27% year-over-year. While we admit the imaginable of Western Digital Corporation (NASDAQ:WDC) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.