Western Digital (WDC) shares surged 5.04% in pre-market trading on Wednesday, extending a rebound from the sharp selloff that followed its fiscal fourth-quarter earnings report.

The stock has been recovering after plunging approximately 13% on August 5, when its forward guidance failed to meet elevated market expectations despite strong quarterly results. Since then, multiple Wall Street firms have lifted their price targets, with Bernstein raising its target from $590 to $770, Morgan Stanley from $650 to $676, BNP Paribas from $660 to $700, and Susquehanna from $500 to $525. The broader storage sector also participated in the recovery, with SanDisk and Seagate both advancing in pre-market trading.

Additionally, large-scale bullish options activity, including a $1.05 million far-out-of-the-money put sale, signaled institutional confidence that the stock will maintain its current levels, further supporting the upward momentum.