Cantor Fitzgerald Urges Long Position on Western Digital (WDC) Amid AI Infrastructure Wave

Western Digital Corporation (NASDAQ:WDC) is one of the hottest large-cap stocks of 2025. On December 16, Cantor Fitzgerald analyst CJ Muse raised the firm’s price target on Western Digital to $250 from $200, while keeping an Overweight rating on the shares. The semiconductor sector is set to remain a market leader after a stellar 2025, given that the AI era is just beginning. While the firm acknowledged some mixed economic signals, Cantor Fitzgerald advised investors to maintain a long position on the SOX index to capture the upcoming wave of AI infrastructure investment.

Earlier on December 5, China Renaissance initiated coverage of Western Digital Corporation (NASDAQ:WDC) with a Buy rating and $193 price target.

Furthermore, on December 2, Citi analyst Asiya Merchant also raised the firm’s price target on Western Digital to $200 from $180 and kept a Buy rating on the shares. The firm raised its target based on a robust memory market characterized by a favorable supply-demand balance, constrained production levels, and consistent pricing strength. Demand visibility has now been extended through 2027, a shift that Citi attributes to the rapid growth of unstructured data created by AI.

Western Digital Corporation (NASDAQ:WDC) is making rapid technological strides to meet the massive storage needs of AI data lakes. The company delivered 204 exabytes of storage in FQ1 2026, which was up 23% year-over-year, and pulled forward its roadmap for Heat-Assisted Magnetic Recording/HAMR. Qualification for HAMR-based drives is now expected to begin with a hyperscale customer in the first half of calendar year 2026, expanding to three customers by year-end.

Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions based on hard disk drive/HDD tech in the US, Asia, Europe, the Middle East, and Africa.

While we acknowledge the potential of WDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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