Jim Cramer on Western Digital: “That Seems Too Rich to Me”

Western Digital’s down astir 5%. It’s a representation banal that trades astatine 46 times earnings. That seems excessively affluent to me.

A pistillate speechmaking and analyzing banal marketplace data. Photo by Artem Podrez connected Pexels

Western Digital Corporation (NASDAQ:WDC) designs and supplies information retention solutions, including interior and outer hard drives, portable drives, information halfway platforms, NAS systems, and related accessories. Cramer highlighted the institution during the February 2 occurrence and stated:

Western Digital, the institution that spun disconnected Sandisk astir a twelvemonth ago, was successful 5th place, up 45%. Micron is tally by Sanjay Mehrotra, 1 of the founders of Sandisk. Strong bloodlines there… Wow, up big. Seagate was successful third, up 48%, and Micron was successful fourth, up 45%. Now, each these representation and information retention plays much than tripled past twelvemonth acknowledgment to surging request from the information center, which is driven by artificial intelligence…

Western Digital besides reported Thursday night, delivering a coagulated bushed with fantabulous guidance, and the banal really finished down much than 10% connected Friday. Stock erased immoderate of those losses contiguous arsenic the information retention plays came roaring back. But you person to support successful mind, sooner oregon later, someone’s going to adhd much accumulation capacity, if not the American companies, past the Korean competitors. And erstwhile much capableness comes online, it mightiness beryllium hard to support these sky-high prices, but I don’t spot immoderate proviso wrong this realm.

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: 33 Stocks That Should Double successful 3 Years and 15 Stocks That Will Make You Rich successful 10 Years 

Disclosure: None. Follow Insider Monkey connected Google News.