Western Digital (WDC) shares surged 5.39% in pre-market trading on Thursday, extending gains driven by the company's bullish earnings forecast and a price target upgrade from Wedbush.

The rally was fueled by Western Digital's guidance that first-quarter profit and revenue will exceed market expectations, significantly boosting investor sentiment ahead of its August 5 earnings release, where consensus estimates call for EPS of $3.24. The upbeat outlook came alongside peer Seagate Technology's strong quarterly results, which sent Seagate shares soaring over 9% after hours and lifted the broader storage sector. SanDisk and Seagate also rose in sympathy, gaining 4.09% and 3.21% respectively.

Adding to the momentum, investment bank Wedbush raised its price target on Western Digital from $540 to $650 while maintaining an Outperform rating, implying significant upside from current levels and providing valuation support for capital inflows. The move also reflects a continued recovery from a prior sell-off, when the stock declined over 12% across two consecutive sessions due to NAND industry headwinds.