Western Digital Jumps 7% on Morgan Stanley’s 33% Price-Target Hike, Seagate Gains 5% as the AI Storage Boom Rolls On

Western Digital (NASDAQ:WDC) banal is up 7% successful Tuesday greeting trading, changing hands adjacent $701 and mounting a caller all-time high. The catalyst is simply a Morgan Stanley enactment that reiterated an Overweight standing and lifted its WDC terms people by 33%.

The upgrade extends a almighty run. Western Digital banal closed Monday up 16.1% astatine $653.53, a 3rd consecutive up time with a Monday intraday precocious of $658.80.

Seagate Technology (NASDAQ:STX) banal is participating, up 5% to astir $1,072 successful the aboriginal Tuesday hours. SanDisk (NASDAQ:SNDK) and Micron Technology (NASDAQ:MU) shares are besides rising modestly, each up 1% arsenic the AI retention commercialized broadens crossed the complex.

Morgan Stanley's 33% Price-Target Hike Lights the Fuse

Morgan Stanley raised its Western Digital banal terms people to $650 from $488, framing the company's dual-tracked UltraSMR and HAMR roadmap arsenic undervalued by investors. The slope described HAMR arsenic a root of reliability and spot alternatively than a exertion spread versus peers.

The steadfast besides lifted its per-share net estimates for Western Digital to $22.40 for adjacent twelvemonth and $43.47 for 2028. Morgan Stanley argued Western Digital banal could treble adjacent twelvemonth if its bull-case pricing assumptions play out.

The enactment lands connected apical of unusually beardown fundamentals. Western Digital reported Q3 FY2026 gross of $3.34 billion, up 46% twelvemonth implicit twelvemonth (YoY), with non-GAAP gross borderline crossing 50% for the archetypal time. Moreover, Western Digital's absorption raised the company's dividend by 20% to $0.15 per share.

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Seagate Gains 5% arsenic the AI Storage Trade Broadens

Seagate banal is riding the aforesaid tailwind. Morgan Stanley separately raised its STX terms people to $1,035 from $767 connected June 15, portion Mizuho and Citi pushed their targets to $1,090 and $1,150, respectively.