Western Digital Leads S&P 500, Morgan Stanley Hikes Target to $650

Morgan Stanley raised its price target for Western Digital (WDC) to $650 from $488 on June 15, 2026. The investment bank maintained an Overweight rating on the stock.

Western Digital shares surged as much as 17% following the update. The company became the top performer in the S&P 500.

Analyst Erik Woodring cited strengthening demand for hard disk drives driven by artificial intelligence. This growth creates a supply-demand imbalance expected to last through 2026.

Meetings with CEO Irving Tan confirmed an upward bias in pricing. The firm also highlighted the company's product roadmap, including upcoming UltraSMR and HAMR technologies.