Rosenblatt initiated coverage of Western Digital with a Buy rating and a $900 price target. This valuation represents a substantial increase from the firm's previous $500 target.
The optimistic outlook arrives despite a broader semiconductor sector sell-off linked to AI spending and competition concerns. Analysts project that hard disk drive demand will outpace supply, resulting in higher prices and expanded gross margins.
Western Digital is currently resetting long-term capacity agreements at higher rates. Forward earnings estimates for the company have risen significantly year-to-date.