Western Digital Stock Soars to 52-Week High on AI-Driven HDD Demand

Western Digital Corp. shares surged 15% to a record $655 intraday after JPMorgan and Morgan Stanley raised price targets to $650, citing insatiable AI-driven demand for hard disk drives. The stock has skyrocketed over 1,000% in twelve months as analysts project a 10-15% supply deficit by 2026.

Monday's rally crowned WDC as the S&P 500's top performer following stellar Q3 results: $2.72 EPS versus $2.39 estimates and revenue jumping 45.5% year-over-year to $3.34 billion. Morgan Stanley's Erik Woodring now ranks Western Digital and Seagate among his highest-conviction picks, noting HDD demand growth of 40-50% annually.

The storage specialist's breakout reflects a broader infrastructure boom as AI workloads strain data center capacity. With legacy storage technologies gaining unexpected relevance in the AI era, Western Digital's vertical integration gives it pole position to capitalize on the shortage.