Western Digital Stocks Rise as Morgan Stanley Promotes to Top Pick

Western Digital shares rose 3.4% in premarket trading after Morgan Stanley elevated the stock to its Top Pick, citing confidence in the company's technology roadmap and capital return plans. The bank lifted its price target to $99 from $92, highlighting the attractiveness of hard-disk drives (HDDs) as the most attractive end-market within its hardware coverage. Morgan Stanley noted Western Digital's technology progress, particularly in energy-assisted magnetic recording (ePMR) and UltraSMR products, and emphasized the company's capital allocation priorities, including buybacks and dividends.

Western Digital Corporation (NASDAQ: WDC) shares experienced a significant boost in premarket trading on September 2, 2025, after Morgan Stanley upgraded the stock to its Top Pick. The investment bank cited confidence in Western Digital's technology roadmap and capital return plans, leading to a 3.4% increase in share price. Morgan Stanley also lifted its price target to $99 from $92, highlighting the attractiveness of hard-disk drives (HDDs) within its hardware coverage [1].

The upgrade reflects Morgan Stanley's optimism about Western Digital's technology progress, particularly in energy-assisted magnetic recording (ePMR) and UltraSMR products. The bank emphasized the company's capital allocation priorities, including buybacks and dividends, as key factors contributing to the positive outlook [1].

Western Digital's stock price reached a 52-week high of $78.92 on August 25, 2025, indicating strong market sentiment and investor confidence in the company's growth prospects [2]. The company's technology advancements and strategic focus on capital return plans have positioned it as a strong player in the data storage industry, with analysts projecting earnings per share (EPS) between $4.57 and $6.38 for FY2025 [3].

References:

[1] https://www.investing.com/equities/western-digital
[2] https://www.investing.com/equities/western-digital
[3] https://www.investing.com/equities/western-digital