On June 17, Western Digital rose 3.97% in regular trading, trading at $715.495/share with turnover of $625 million, extending a multi-day rally in the storage sector.

The continued advance follows Morgan Stanley's major research note published on June 15, in which analyst Erik Woodring raised Western Digital's target price from $488 to $650 after intensive Asia field checks over three weeks. The firm concluded that the HDD upcycle is elongating, with supply shortages now expected to persist through at least 2028. HDD demand is growing 40% to 50% annually, while supply growth lags at 30% to 35%, creating a widening gap. Morgan Stanley's base-case 2028 EPS estimates for WDC now sit 70% above consensus, with an extreme bull scenario pointing to approximately 10x EPS growth from CY25 to CY28.

Multiple other banks also raised targets, including Citi to $685 and Wells Fargo to $575. Separately, Western Digital held its first Innovation Day in Shenzhen for Chinese clients, signaling intensified efforts to capture AI data center storage demand in the region, where cloud providers continue ramping capital expenditure.

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