Western Digital (WDC) Surges 5.22% on Three-Day Rally; Morgan Stanley Upgrade, Q4 Earnings Beat Drive Momentum

Western Digital (WDC) shares surged 5.22% on Wednesday, marking a three-day winning streak with a cumulative gain of 12.63%. The stock hit an intraday high of $90.22, its highest level since September 2025, driven by renewed investor confidence in the company’s strategic direction and financial resilience.

The rally was catalyzed by a bullish upgrade from Morgan Stanley analyst Erik Woodring, who raised the price target for WDC to $99 from $92 and reaffirmed an “Overweight” rating. The analyst cited strategic discussions with Western Digital executives, emphasizing the company’s robust technology roadmap and innovation in NAND flash memory and hard disk drive (HDD) solutions. These advancements align with growing demand for data storage infrastructure, particularly in AI-driven and cloud-based applications.

Recent financial results further bolstered market sentiment. Western Digital reported Q4 earnings of $1.66 per share on revenue of $2.61 billion, surpassing analyst expectations. The company also projected $2.70 billion in revenue for the upcoming September quarter, exceeding consensus forecasts. Strong guidance underscored its ability to navigate macroeconomic challenges while maintaining operational efficiency and capitalizing on sector-specific growth opportunities.

The stock’s performance reflects broader trends in the data storage industry, where demand is being fueled by generative AI and edge computing. Western Digital’s leadership in NAND and HDD technologies positions it to benefit from these shifts, as enterprises and consumers increasingly rely on scalable storage solutions. The firm’s long-term value proposition was also highlighted, with a five-year investment in WDC growing from $1,000 to $2,364, demonstrating its compounding potential amid a 45.8% annualized gain since the beginning of 2025.