Wedbush raised targets for STX and WDC, citing sustained hard-drive shortages and cloud provider demand through 2027.
Wedbush analyst Matt Bryson increased Seagate Technology’s (STX) price target to $1,000 from $825 and Western Digital’s (WDC) to $650 from $540, maintaining Outperform ratings. Both stocks fell over 6% on July 27, with STX at $800 and WDC at $487.87, despite the bullish outlook.
The firms supply high-capacity hard drives for AI workloads, with cloud providers reserving supply years ahead. Reports this week and next will reveal whether production constraints are limiting deliveries or if pricing power remains intact.
Wedbush expects the hard-drive shortage to persist into 2027, driven by AI training data, inference output, and cloud storage expansion. The supply-demand imbalance gives Seagate and Western Digital leverage to sustain margins.