Cramer: Western Digital 'Got Lucky,' Not an AI Star

CNBC's Jim Cramer remains unconvinced by Western Digital Corporation's impressive stock performance, suggesting the company "got lucky" despite its shares rising 644% over the past year. He differentiated the storage device manufacturer from AI chip leaders like NVIDIA and Micron, deeming Western Digital an "also-ran" company. This perspective contrasts with a recent analyst upgrade from Morgan Stanley, which raised its price target to $650. This optimism stems from expectations of significant annual growth in hard disk drive demand, projected to outpace supply due to expanding AI and cloud computing needs.

While Western Digital reported strong fiscal third-quarter earnings, exceeding analyst estimates with $3.34 billion in revenue and $2.72 in earnings per share, Cramer highlighted concerns. He previously noted the company's struggle to forecast demand and limited capacity increases, which he argued damaged key clients like Apple. Furthermore, hedge fund interest in Western Digital shares decreased slightly in Q1 2026, with 79 funds holding the stock, a drop from the previous quarter, while interest in competitor Micron grew.