Western Digital shares jump 10.07% intraday after Bernstein upgrades to Outperform amid strong AI storage demand.

Western Digital jumped 10.07% intraday following an upgrade from Bernstein analyst, who moved the stock to Outperform from Market Perform, citing a favorable entry point amid a recent pullback. The upgrade was driven by strong demand for AI-driven data center storage, improving fundamentals, and confidence in the company’s fiscal 2026 outlook, particularly rising margins in its cloud and flash businesses. The move aligns with broader industry trends projecting a surge in semiconductor equipment spending fueled by AI adoption. This news sharply contrasted with a prior 7.5% drop two days earlier linked to geopolitical tensions over helium supply chains in the semiconductor industry. The upgrade significantly improved market sentiment toward Western Digital, triggering the intraday rally.