Western Digital CorporationMorgan Stanley raised price target to $650, and company reported strong earnings and guidance.

Western Digital stock has surged more than 1,115% over the past year, driven by booming AI demand for high-performance storage and a favorable pricing environment. Morgan Stanley raised its price target on the stock to $650 from $488, citing robust demand for hard disk drives and continued pricing strength across the storage market. The company reported a 97% year-over-year jump in adjusted earnings per share to $2.72 in its fiscal third quarter, and it projects fiscal fourth-quarter revenue of approximately $3.65 billion, representing about 40% growth, with gross margin expected to reach 51% to 52%. Wall Street consensus estimates call for earnings per share of $9.60 in fiscal 2026 and $17.61 in fiscal 2027, reflecting growth of nearly 112% and 83%, respectively. With 25 analysts assigning a Strong Buy consensus rating, the stock's valuation at 68 times forward earnings is seen as reasonable given its earnings momentum.
Western Digital CorporationMorgan Stanley raised price target to $650, and company reported strong earnings and guidance.