Alger Mid Cap Focus Fund on Western Digital Corporation
Thesis
Alger views Western Digital as a beneficiary of rising hyperscaler data-center investment and continued growth in data volumes. The HDD industry is highly consolidated, Western Digital has a leading position, and the business has shifted structurally toward cloud customers while industry participants emphasize capital discipline instead of aggressively adding unit capacity. Strong fiscal third-quarter results, better pricing and margins above prior guidance supported the thesis.
“The HDD industry is highly consolidated, with only two scaled manufacturers, and Western Digital holds a leading market position.”