New York, June 15, 2026, 10:12 EDT. Morgan Stanley lifted its price target on Western Digital (WDC) to $650, saying demand for AI storage solutions is picking up.
- Western Digital traded around $637 in early action Monday after touching an intraday high of $657.40.
- Morgan Stanley raised its price target on WDC to $650 from $488 and kept its Overweight rating.
- Western Digital and Seagate are still seeing gains from storage demand in AI data centers.
Western Digital jumped Monday as traders kept piling into storage names tied to AI. WDC traded at $637.00, up 13% from Friday’s close, after briefly reaching $657.40 earlier in the session. Seagate was moving higher too, last at $999.78, as hard-drive stocks drew more buyers on hopes for AI-fueled demand.
Morgan Stanley raised its Western Digital price target to $650 from $488, keeping its Overweight rating, MT Newswires reported through MarketScreener. China Renaissance lifted its target to $655 on June 12. JPMorgan moved up to $650 on June 11. BofA Securities and Mizuho increased their targets earlier this month.
Western Digital kept rising after its rally Friday. StockStory said shares surged 6.2% Friday morning on an overweight rating and capacity news from a South Korea peer, which brought AI-storage back into focus. The stock was already up 197% for 2026 and last traded at $557.50, not far from the June 2026 high of $594.11.
Supply is front and center. Western Digital’s 2026 HDD output is spoken for, The Motley Fool said, with contracts running to 2028 and 2029. Seagate has locked up most of its nearline exabyte supply through 2027. That leaves both companies with higher visibility than the norm in a sector Wall Street usually labels cyclical.
Western Digital said fiscal Q3 revenue hit $3.34 billion, up 45% from a year earlier. GAAP gross margin was 50.2%. Non-GAAP diluted EPS reached $2.72. Free cash flow was $978 million. CEO Irving Tan said AI workloads are pushing demand, since that data stays on HDDs.
Western Digital surged Monday, with the move going beyond a simple response to a price target change. Investors are starting to view Western Digital and Seagate as part of the AI supply chain instead of just old-line storage names. Shares are close to Morgan Stanley’s new $650 target after the run up.
