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1h ago

Seagate, Western Digital Jump After Morgan Stanley Hikes Targets on AI-Driven HDD Demand

Morgan Stanley argues AI-driven workloads are turning HDDs into data-center plays with firmer pricing through 2027.

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Overview

  • Morgan Stanley lifted Seagate’s price target to $265 from $168 and Western Digital’s to $171 from $99, maintaining overweight ratings on both.
  • Seagate rose nearly 6% to $230.11 in morning trading and Western Digital gained more than 9% to $116.74 following the call.
  • Analysts said HDD demand has inflected on accelerating cloud infrastructure investment and AI inferencing, shifting investor perceptions of the group.
  • The firm estimates the HDD market is undersupplied by up to 10%, supporting firmer nearline pricing and extending demand visibility into the first half of 2027.
  • The rally tracked a broader AI data-center trade, while Rosenblatt separately raised Western Digital’s target to $125, citing a full backlog and higher drive average selling prices.