We recently published 10 Big Names With Double-Digit Upsides. Western Digital Corp. (NASDAQ:WDC) is one of last week’s top performers.
Shares of Western Digital surged by 14.56 percent week-on-week to touch a new all-time high after Morgan Stanley named it as its “top pick” across the sector.
On Friday, Western Digital Corp. (NASDAQ:WDC) touched a new 52-week high of $93.10, rallied on all days of the shortened trading week, albeit the steepest jump noticeably occurred on September 3 after the investment bank’s market report.
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This followed a series of “constructive” meetings between Morgan Stanley and Western Digital Corp. (NASDAQ:WDC) that boosted the former’s confidence in the latter’s technology roadmap.
Additionally, the storage firm has demand visibility, as evidenced by non-cancellable purchase orders and long-term agreements in the second half of 2026.
This is “the single most important data point illustrating that [cloud service firms] are comfortable with WDC’s technology roadmap,” it said.
Morgan Stanley also gave Western Digital Corp. (NASDAQ:WDC) a higher price target of $99 versus $92 previously, adding that the price could breach the $125 mark in a bull case scenario.
From its closing price of $92.04 on Friday, the new price targets marked upside potential of 7.56 percent and 35.8 percent, respectively.
While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.