Which Stock Will Rally: Super Micro Computer or Western Digital?
Even as Western Digital surged 18% during the past Week, its peer Super Micro Computer may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Super Micro Computer (SMCI) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Western Digital (WDC) stock, suggesting you may be better off investing in SMCI
- SMCI’s Last 12 Months revenue growth was 46.6%, vs. WDC’s 39.2%.
- In addition, its Last 3-Year Average revenue growth came in at 64.7%, ahead of WDC’s 8.3%.
- SMCI’s 3-year average margin is stronger: 8.2% vs. WDC’s 3.7%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Strategic asset allocation and diversification help you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
WDC develops and sells data storage devices, including HDDs, SSDs, and flash-based embedded storage for computers, mobile phones, tablets, and wearable devices. SMCI develops high-performance modular server and storage solutions for enterprise data centers, cloud computing, AI, 5G, and edge computing markets.
Valuation & Performance Overview
- Western Digital vs Seagate Technology: Which Is the Stronger Buy Today?
- With Dell Technologies Stock Up 9.1% in a Day, Is It Time to Compare It Against Western Digital Stock?
- Seagate Technology Stock’s One-Day Drop Offers a Chance to Reevaluate Western Digital Stock
- S&P 500 Movers | Winners: AMD, TSLA, MPWR | Losers: VZ, SBUX, WDC
- WDC Up 23% In A Week. Do You Buy Or Wait?
- WDC Stock Up 23% after 5-Day Win Streak
| WDC | SMCI | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 20.4 | 19.2 | SMCI |
| Revenue Growth | |||
| Last Quarter | 30.0% | 7.5% | WDC |
| Last 12 Months | 39.2% | 46.6% | SMCI |
| Last 3 Year Average | 8.3% | 64.7% | SMCI |
| Operating Margins | |||
| Last 12 Months | 21.1% | 5.7% | WDC |
| Last 3 Year Average | 3.7% | 8.2% | SMCI |
| Momentum | |||
| Last 3 Year Return | 519.3% | 426.4% | 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: WDC Revenue Comparison | SMCI Revenue Comparison
See more margin details: WDC Operating Income Comparison | SMCI Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell SMCI Stock to see if Super Micro Computer’s edge holds up under the hood or if Western Digital still has cards to play (see Buy or Sell WDC Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| WDC Return | -11% | 18% | -52% | 66% | 14% | 268% | 253% | ||
| SMCI Return | 32% | 39% | 87% | 246% | 7% | 32% | 1579% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 90% | 58% | ||
| SMCI Win Rate | 58% | 58% | 50% | 58% | 42% | 60% | 54% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| WDC Max Drawdown | -54% | -11% | -54% | -0% | -6% | -32% | -26% | ||
| SMCI Max Drawdown | -33% | -2% | -21% | -14% | -37% | -12% | -20% | ||
| 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 11/6/2025 (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 SMCI Dip Buyer Analyses and WDC 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.