Is Western Digital Corp (WDC) Benefitting From AI Spending?

Group 1: Fund Performance - Night Watch Investment Management reported a 4.28% net appreciation in its fund LP for Q3 2025, with a year-to-date performance of 25.88% [1] - The portfolio continued to perform strongly during the quarter, coinciding with a robust market recovery [1] Group 2: Western Digital Corporation Overview - Western Digital Corporation (NASDAQ:WDC) specializes in data storage devices and solutions based on HDD technology [2] - The stock experienced a one-month return of -1.20% but gained 199.80% over the last 52 weeks, closing at $161.00 per share on December 04, 2025, with a market capitalization of $55.19 billion [2] Group 3: Investment Insights on Western Digital Corporation - Night Watch Investment Management initiated two positions in technology benefiting from AI-related spending, highlighting Western Digital as a pure play on HDDs after spinning off its subsidiary Sandisk [3] - The HDD industry has evolved into a duopoly dominated by Western Digital and Seagate, with increasing demand for storage capacity driven by data center investments [3] Group 4: Hedge Fund Interest and Revenue Growth - Western Digital Corporation was held by 84 hedge fund portfolios at the end of Q3 2025, an increase from 74 in the previous quarter [4] - The company reported revenue of $2.8 billion in Q1 of fiscal 2026, reflecting a 27% year-over-year increase [4]