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AI Demand Fuels Rally in Data Storage Stocks

Shares of Western Digital and Seagate surged on Sep 29 after a Morgan Stanley note cited "stronger for longer" AI-driven demand.

Olivia Sharp • • 1 min read • 571 views
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Western Digital and Seagate Technology stocks surged over 5% on Sep 29 after Morgan Stanley raised price targets, citing sustained AI-driven demand for data storage and cloud infrastructure.

Analyst Upgrade Sparks Rally

Investors on Sep 29, 2025, showed strong confidence in the hardware supply chain for artificial intelligence. Shares of data storage manufacturer Western Digital (WDC) surged 9.2%, while competitor Seagate Technology (STX) rose 5.3%. Leading AI chipmaker Nvidia (NVDA) also gained 2%.

The primary catalyst was a research note from Morgan Stanley analysts, who raised their price targets for both Western Digital and Seagate. The analysts cited "'stronger for longer' demand driven by cloud infrastructure spending and growing data retention needs to support AI," according to a report from Investopedia. The bank's analysts stated their belief …

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