Western Digital jumps 9% premarket after Morgan Stanley lifts price target to $650, fueling broader semiconductor rally.
Western Digital shares surged 9% in premarket trading Tuesday after Morgan Stanley raised its price target to $650 from $488 and maintained an Overweight rating. The move extended Monday’s 16% gain, which saw the stock close at an all-time high alongside peers Micron Technology and SanDisk.
The rally in AI-related storage and memory stocks followed a US-Iran peace agreement aimed at reopening the Strait of Hormuz, easing oil supply concerns. Investors bet the Federal Reserve may overlook recent energy-driven inflation if the deal holds, reducing rate hike risks. Thirty S&P 500 stocks, including AMD, hit record highs Monday.
Semiconductor stocks extended gains as Wall Street debated the Fed’s next move. Goldman Sachs delayed its rate cut forecast, while markets weighed whether policymakers would adopt a hawkish tone at this week’s meeting.