On July 21, Western Digital rose 4.73% in pre-market trading, trading at $513.38/share, with turnover of $4.7054 million, as the broader storage sector strengthened.

On the news front, the rally was primarily driven by robust AI infrastructure demand for storage products. SK Hynix Chairman stated that AI semiconductor demand is expected to grow 60% to 100% year-over-year next year, while major manufacturers have virtually no substantial capacity expansion plans, pointing to a widening supply-demand gap. Morgan Stanley noted that Q3 data center memory prices rose at least 25% quarter-over-quarter, characterizing memory as increasingly one of the primary bottlenecks in AI infrastructure — a structural constraint expected to persist for years.

Additionally, a wave of institutional upgrades boosted market confidence. Citi raised its target price on Western Digital to $800, BNP Paribas to $660, and UBS to $560, triggering notable capital inflows. The company also benefits from optimistic expectations surrounding its strategic separation of flash and HDD business units, which investors view as a key move to unlock shareholder value.

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