On June 18, Western Digital rose 3.63% overnight, trading at $740.57/share, with turnover of $329,900. The stock continues to gain momentum following a major upgrade from Morgan Stanley highlighting a prolonged HDD supply shortage.

Morgan Stanley analyst Erik W. Woodring and his team, after intensive field research across Asia including the Taiwan AI Summit, COMPUTEX, and Western Digital's Asia roadshow, concluded that the HDD upcycle is extending longer than expected and supply tightness is more severe than previously anticipated. The firm raised its target price on Western Digital from $488 to $650 and on Seagate from $767 to $1,035, noting that vendor pricing power is far stronger than the market realizes. In an extreme bull case, both companies could see EPS grow approximately tenfold between CY25 and CY28. JP Morgan separately raised its Western Digital target to $650, maintaining an Overweight rating.

Within the Technology Hardware, Storage & Peripherals sector, SanDisk Corp. up 2.71%, Apple up 0.61%, Seagate Technology up 2.52%, Dell Technologies up 1.79%, Super Micro Computer up 2.16%.

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