New York, Jan 28, 2026, 13:16 EST — Regular session
- Shares of Western Digital surged about 11% in afternoon trading, reaching a fresh intraday high.
- Storage shares rose, led by Seagate after upbeat signals pointed to stronger data-center demand.
- Investors will zero in on Western Digital’s quarterly report Thursday after the bell.
Shares of Western Digital Corp jumped 11.2% to $280.94 in afternoon trading, extending a two-day rally and reaching a new intraday high of $281.61. Seagate Technology soared 19.7%, while Sandisk and Micron Technology gained 8.8% and 5.6%, respectively.
Western Digital is now at the center of a trade boosting hardware stocks, fueled by expectations that data-center spending will stay strong. Investors are also bracing for the company’s upcoming earnings report, which often sets the tone for the sector with its guidance on drive pricing and shipment volumes.
The broader market sentiment was a key factor. The S&P 500 surpassed 7,000 points for the first time Wednesday, driven by investor enthusiasm around AI just ahead of the Federal Reserve’s policy announcement later that day. “You could definitely have a continuation on the rally in equities if … AI expenditure is bringing in revenues,” said Jeff Leschen, managing director at Bramshill Investments. 1
Seagate’s optimistic forecast fueled Wednesday’s jump in storage stocks, as the company forecasted quarterly revenue and profits surpassing Wall Street’s estimates. The surge highlights growing enterprise demand tied to AI expansion, which is driving large-scale data storage needs. “Modern data centers increasingly need storage solutions that combine performance and cost-efficiency at exabyte-scale,” said Seagate CEO Dave Mosley. 2
Western Digital, after spinning off its flash division into Sandisk last year, is now fully focused on hard disk drives. This puts the company in a prime position to reflect demand trends for high-capacity drives in cloud data centers. 3
Western Digital was already on the move before Wednesday. On Tuesday, its shares climbed 4.9%, closing at $252.66. That outpaced competitors and marked a second consecutive day at a fresh 52-week high, according to MarketWatch data. 4
Analysts are digging in. Mizuho raised its price target on Western Digital to $265 from $240, holding onto an outperform rating, according to TheFly. Investors are debating just how long tight supply and strong demand can sustain these high prices. 5
The immediate focus is pricing. Investors want updates on whether average selling prices and volumes for “nearline” hard drives—the large-capacity drives used in data center storage—are still rising, and whether supply bottlenecks are easing or worsening.
The trade is crowded. If hyperscalers—the biggest cloud giants—begin scaling back orders or if drive prices fall as supply ramps up, this group could face a sharp setback. A Fed that turns more hawkish than expected could also dampen risk appetite for AI-related stocks.
Western Digital is scheduled to release its fiscal second-quarter earnings after markets close on Thursday, Jan. 29. The company will host a conference call at 4:30 p.m. Eastern. 6
