Super Micro Computer vs Western Digital: Which Stock Could Rally?
Even as Super Micro Computer fell -23% during the past Week, its peer Western Digital may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Western Digital (WDC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Super Micro Computer (SMCI) stock, suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 30.0%, vs. SMCI’s -15.5%.
- In addition, its Last 12 Months revenue growth came in at 39.2%, ahead of SMCI’s 11.9%.
- WDC’s LTM margin is higher: 21.1% vs. SMCI’s 4.4%.
That is one way to look at stocks. The Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.
SMCI develops high-performance modular server and storage solutions for enterprise data centers, cloud computing, AI, 5G, and edge computing markets. WDC develops and sells data storage devices, including HDDs, SSDs, and flash-based embedded storage for computers, mobile phones, tablets, and wearable devices.
Valuation & Performance Overview
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| SMCI | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 25.6 | 20.3 | WDC |
| Revenue Growth | |||
| Last Quarter | -15.5% | 30.0% | WDC |
| Last 12 Months | 11.9% | 39.2% | WDC |
| Last 3 Year Average | 63.1% | 8.3% | SMCI |
| Operating Margins | |||
| Last 12 Months | 4.4% | 21.1% | WDC |
| Last 3 Year Average | 7.4% | 3.7% | SMCI |
| Momentum | |||
| Last 3 Year Return | 415.4% | 496.9% | SMCI |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: SMCI Revenue Comparison | WDC Revenue Comparison
See more margin details: SMCI Operating Income Comparison | WDC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell WDC Stock to see if Western Digital’s edge holds up under the hood or if Super Micro Computer still has cards to play (see Buy or Sell SMCI Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SMCI Return | 32% | 39% | 87% | 246% | 7% | 32% | 1579% | <=== | |
| WDC Return | -11% | 18% | -52% | 66% | 14% | 268% | 253% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| SMCI Win Rate | 58% | 58% | 50% | 58% | 42% | 60% | 54% | ||
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 90% | 58% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| SMCI Max Drawdown | -33% | -2% | -21% | -14% | -37% | -12% | -20% | ||
| WDC Max Drawdown | -54% | -11% | -54% | -0% | -6% | -32% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/7/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read WDC Dip Buyer Analyses and SMCI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.