The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

With a net profit margin of 55.03%, Western Digital Corporation (NASDAQ:WDC) is included among the 12 Most Profitable American Stocks to Buy in 2026.

Carol Gauthier/Shutterstock.com

Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology.

On June 15, Morgan Stanley analyst Erik Woodring raised the firm’s price target on Western Digital Corporation (NASDAQ:WDC) from $488 to $650, while maintaining an ‘Overweight’ rating on the shares.

After spending a week with Western Digital’s management, including CEO Irving Tan and CFO Kris Sennesael, Morgan Stanley stated that it has “even greater conviction” in the company’s outlook. The analyst firm believes that the demand for hard disk drives continues to grow, with customers already seeking supply visibility into 2032. It also expects the price per terabyte to move higher, while the company’s UltraSMR and HAMR products remain on track for launch between the second half of 2026 and the first half of 2027. Moreover, Morgan Stanley noted that Western Digital is accelerating its capital returns.

The share price of Digital Corporation (NASDAQ:WDC) has soared by over 248% since the beginning of 2026, putting it among the 10 Most Volatile Stocks to Buy in S&P 500.

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.

READ NEXT: 14 Best S&P 500 Stocks to Buy Now According to Analysts and 10 Most Profitable Energy Stocks to Buy Now

Disclosure: None. Follow Insider Monkey on Google News.