Western Digital reaches record high after analyst upgrades

Shares of Western Digital Corporation surged to a new all-time high on Tuesday, June 16, 2026, continuing a powerful rally fueled by a wave of analyst optimism and strong financial results. The stock gapped up at the open, trading near $701 in the morning session, a gain of approximately 7% from the previous day's close of $653.53.

The immediate catalyst was a significant price target increase from Morgan Stanley, which reiterated its Overweight rating and raised its target to $650 from $488. The firm cited the company's dual-tracked technology roadmap and argued the stock could double next year under its most bullish pricing assumptions. This followed a similar upgrade from JPMorgan Chase the previous day, which also raised its target to $650. These moves extended a rally that saw the stock jump nearly 15% on Monday, making it the top performer in the S&P 500 that day.

Analysts point to a fundamental supply-demand imbalance in the hard disk drive (HDD) market, driven largely by artificial intelligence applications. Industry forecasts indicate HDD supply will lag behind demand by 10% to 15% throughout 2026, with AI accelerating annual demand growth to 40-50% while production...