Western Digital's stock surged 5.54% in pre-market trading on Tuesday, driven by a significant capital return announcement and bullish analyst sentiment.

The company announced that its Board of Directors has authorized an additional $4.0 billion for share repurchases under its existing buyback program. This substantial capital return initiative signals strong management confidence in the company's future prospects and financial health, typically viewed positively by investors as it can enhance shareholder value through reduced share count.

Adding to the positive momentum, Argus Research raised its target price for Western Digital to $300 from $180, representing a substantial vote of confidence in the company's valuation and growth trajectory. This analyst action likely contributed to the bullish sentiment surrounding the stock in the pre-market session.