:max_bytes(150000):strip_icc()/GettyImages-2190892739-c229089e946445fb8275a5439ff23d1a.jpg "Hard Drive Stocks Are Surging. These Analysts Think the Good Times Can Continue")
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Key Takeaways
- Shares of Western Digital and Seagate Technology surged Monday as Morgan Stanley analysts raised their price targets for the stocks citing AI-driven demand trends.
- Both stocks have already more than doubled in value since the start of the year.
It’s been a good year for investors in data storage stocks. Morgan Stanley analysts say artificial intelligence could make it even better.
The bank’s analysts over the weekend boosted their price targets and forecasts for hard drive makers Western Digital (WDC) and Seagate Technology (STX), anticipating “stronger for longer” demand driven by cloud infrastructure spending and growing data retention needs to support AI.
Why This Matters for Investors
Morgan Stanley analysts said they believe “we are still in the middle” of an upturn for data storage demand as big tech firms’ AI spending grows. That could leave room for hard drive stocks, which have a strong 2025, to rise further.
Western Digital, which Morgan Stanley said remains a “top pick” after recent discussions with management, were up over 9% around $116 in recent trading, on track to close at an all-time high. Shares of Seagate were up about 5% around $227, less than 1% off last week’s record close.
Both stocks have more than doubled in value since the start of the year, propelling them into the ranks of the best-performing stocks in the S&P 500 for 2025.
Morgan Stanley sees further gains ahead, lifting its target for Western Digital to a new Street high of $171 from $99, and Seagate’s to $265 from $168, suggesting upside of 60% and 22% from Friday’s closing levels, respectively.
