Shares related to data storage continued their upward trajectory on Tuesday, with Western Digital (WDC.US) climbing more than 7%.

Seagate Technology (STX.US) saw gains exceeding 4%, while Micron Technology (MU.US) and SanDisk (SNDK.US) advanced nearly 1%, with all companies reaching new all-time highs.

The positive movement follows a recent industry research report from Morgan Stanley, published on June 15th.

Lead analyst Erik W. Woodring and his team, after an intensive three-week tour of the Asian market, concluded that the upcycle for the HDD industry is extending.

They found the supply shortage to be more severe than previously anticipated and noted that suppliers' willingness to raise prices is significantly stronger than the market had recognized.

Consequently, the firm has substantially increased its price targets for key storage companies.

The target for Seagate Technology was raised from $76 to $103, and for Western Digital from $48 to $65.

Under an extremely optimistic pricing scenario, the report suggests both companies could see their earnings per share grow approximately tenfold between calendar years 2025 and 2028.