Hard Drive Stocks Surge on AI-Driven Demand, Analysts Bullish on Continued Growth
Shares of Western Digital and Seagate Technology soared Monday after Morgan Stanley analysts raised price targets, citing robust AI-driven demand for data storage. Both stocks have more than doubled year-to-date, emerging among the S&P 500's top performers.
Morgan Stanley anticipates sustained growth in cloud infrastructure spending and data retention needs to support AI development. The bank maintains Western Digital as a top pick, with shares climbing 9% to a record $116, while Seagate gained 5% to $227—nearing its all-time high.
The rally reflects a broader trend of tech firms prioritizing AI-capable infrastructure. Analysts suggest the sector remains mid-cycle, with 2025 upside potential as hyperscalers continue expanding data center capacity.
