Morgan Stanley Names Western Digital (WDC) a 2026 Top Pick Amid Cloud Capital Expenditure Boom

A time earlier this rating, Cantor Fitzgerald expert C.J. Muse besides raised the firm’s terms people connected Western Digital to $250 from $200 portion keeping an Overweight standing connected the shares. After outperforming the S&P 500 by ~30 points successful 2025, SOX is expected to proceed starring the marketplace higher owed to the monolithic request for compute, networking, memory, and instrumentality generated by the aboriginal AI era.

While immoderate cyclical factors mightiness origin short-term volatility, the steadfast believes the operation of a favorable macroeconomic situation and the anticipated exponential surge successful AI infrastructure spending justifies a agelong presumption successful the SOX and an overweight allocation to AI-related stocks heading into 2026.

Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells information retention devices and solutions based connected hard disk drive/HDD tech successful the US, Asia, Europe, the Middle East, and Africa.

While we admit the imaginable of 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.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.