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Western Digital Jumps 7%, Seagate Climbs 5% as Bernstein Calls Toshiba Selloff a Storm in a Teacup; SanDisk Inches Higher
24/7 Wall St. • • business
Key Points:
- Western Digital and Seagate Technology stocks rebounded strongly after three Wall Street firms argued that Toshiba's planned HDD capacity expansion will enter a market still undersupplied with drives, easing earlier selloff fears.
- Western Digital shares rose 7% to $442.44 and Seagate climbed 5% to $891.76, outperforming broader tech indices and flash storage maker SanDisk, which saw minimal gains.
- Bernstein, Citi, and Morgan Stanley maintained bullish views, citing ongoing HDD supply shortages and technology advantages for Western Digital and Seagate, while Goldman Sachs favored Seagate over Western Digital due to supply discipline and tech progress.
- Goldman Sachs assigned a Neutral rating to Western Digital and expects it to underperform Seagate, though market moves suggest traders currently favor Western Digital's recovery.
- Investors should monitor whether Western Digital continues to outpace Seagate ahead of earnings and look for updates on Toshiba's expansion timing, which could impact HDD supply dynamics.
