Morgan Stanley Raises Price Target on Western Digital (WDC). Here is Why

With a net profit margin of 55.03%, Western Digital Corporation (NASDAQ:WDC) is included among the 12 Most Profitable American Stocks to Buy in 2026.

Morgan Stanley Raises Price Target on Western Digital (WDC). Here is Why

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Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology.

On June 15, Morgan Stanley analyst Erik Woodring raised the firm’s price target on Western Digital Corporation (NASDAQ:WDC) from $488 to $650, while maintaining an ‘Overweight’ rating on the shares.

After spending a week with Western Digital’s management, including CEO Irving Tan and CFO Kris Sennesael, Morgan Stanley stated that it has “even greater conviction” in the company’s outlook. The analyst firm believes that the demand for hard disk drives continues to grow, with customers already seeking supply visibility into 2032. It also expects the price per terabyte to move higher, while the company’s UltraSMR and HAMR products remain on track for launch between the second half of 2026 and the first half of 2027. Moreover, Morgan Stanley noted that Western Digital is accelerating its capital returns.

The share price of Digital Corporation (NASDAQ:WDC) has soared by over 248% since the beginning of 2026, putting it among the 10 Most Volatile Stocks to Buy in S&P 500.

While we acknowledge the risk and potential of WDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WDC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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