Western Digital Corporation (WDC): Among Billionaire Larry Robbins' Stock Picks with Huge Upside Potential

We recently published a list of Billionaire Larry Robbins’ 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Western Digital Corporation (NASDAQ:WDC) stands against other stock picks with huge upside potential.

Larry Robbins is an American hedge fund manager and philanthropist who founded Glenview Capital Management in 2000. The firm manages capital for investors across a range of private investment funds. Robbins is currently the CEO of his firm. He graduated with honors from the Jerome Fisher Program in Management and Technology at the University of Pennsylvania in 1992 and earned a BS in economics with concentrations in accounting, finance, and marketing. He also has a BS in engineering with a major in systems engineering. He became a Certified Public Accountant in Illinois in 1991. Before founding Glenview Capital, Robbins worked as a portfolio manager at Omega Advisors, which is a prominent hedge fund founded by Leon Cooperman. In 2017, Larry Robbins also began serving as chairman of the Robin Hood Foundation, which fights poverty in New York City. Through his Family Foundation, he is an active supporter of education reform both in NYC and on the national level. He also serves as Chairman of the Board of KIPP NY and is a Board Member of Zearn and Relay Graduate School of Education.

Due to his sharp analytical skills and a focus on the healthcare sector, Robbins has built a reputation as one of the most influential figures in the hedge fund industry. Glenview Capital Management has 6 clients and discretionary assets under management (AUM) of $5.6 billion as reported in its Form ADV dated 4 March 2025. The last reported 13F filing for Q4 2024 included $3.95 billion in managed 13F securities and a top 10 holdings concentration of 65.22%. Earlier in September 2024, Institutional Investor reported that Glenview Capital Management was on track for its best year in 5 years. The flagship Glenview Capital Partners fund was up 3.45% in August 2024 and 17.2% through the first 8 months of the year. One of the reasons behind this performance is the hedge fund’s diversification away from a historically heavy concentration in healthcare stocks. Glenview Capital Management has now expanded its investments into the tech sector and other industries. Larry Robbins believes in a straightforward investment strategy:

“There are only two things that matter in investing. What are they going to earn, and what multiple are people going to put on that. Let’s not make our business any more complicated than this.”

Our Methodology

To compile the list of billionaire Larry Robbins’ 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Glenview Capital from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 30 stock picks and ranked the stocks in ascending order of this upside potential. We have also added Glenview Capital’s stake in each stock as well as the broader hedge fund sentiment for it.

Note: All data was sourced on May 8.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Western Digital Corporation (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 Corporation (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 Corporation’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.”

Overall, WDC ranks 7th on our list of billionaire Larry Robbins’ stock picks with huge upside potential. While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WDC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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