Western Digital shares surged 7.87% during Friday’s pre-market session, driven by the company’s upbeat earnings outlook and a bullish analyst revision. The storage giant guided for first-quarter profit and revenue to exceed market expectations, which significantly boosted investor confidence. Additionally, Wedbush raised its price target on the stock to $650 from $540, maintaining an Outperform rating and providing further valuation support.

The rally was also fueled by a broader surge across the memory chip sector. Strong quarterly results from peer Seagate Technology lifted the entire storage space, while renewed optimism around AI infrastructure spending from tech giants like Microsoft and Amazon underscored robust demand for memory. Samsung’s forecast of persistent memory shortages further reinforced the positive sentiment for chipmakers.

The combination of company-specific catalysts and favorable industry tailwinds helped Western Digital extend its multi-day rebound, positioning it as one of the top beneficiaries in the pre-market memory rally.