Western Digital (NASDAQ: WDC) jumped roughly 7% in premarket trading on Tuesday, June 16, 2026, as Wall Street piled in on a bullish thesis around AI-driven storage demand. Morgan Stanley analyst Erik Woodring raised his price target on WDC to $650 from $488 and reiterated an Overweight rating, calling Western Digital one of his "most-favored" picks. The firm cited more than 30% year-over-year growth in nearline enterprise storage, accelerating pricing, expanding margins, and improving operating leverage. Morgan Stanley's bull case values the stock at $920, with the firm projecting the hard disk drive supply shortage to persist through at least 2028. JPMorgan also raised its target to $650 on June 12. The rally comes after a blockbuster Q3 FY2026 report in which Western Digital posted EPS of $2.72 against a $2.39 consensus, with revenue of $3.34 billion, up 45.5% year-over-year. Investors are now eyeing the next earnings report, estimated for July 29, 2026, with consensus calling for E...