Western Digital Corp (NASDAQ:WDC) shares are booming Monday. Morgan Stanley analyst Erik Woodring reaffirmed his Overweight rating and lifted his price target from $488 to $650. Here’s what you need to know.
- Western Digital shares are testing new highs. What’s driving WDC to record levels?
The call follows a week of management meetings and Asia checks that strengthened his conviction that Western Digital will continue to outperform on the back of 30%+ year‑over‑year nearline enterprise growth, accelerating pricing, expanding margins and improving operating leverage.
Stronger Outlook And Valuation Reset
Woodring raised his FY27 and FY28 earnings estimates to $22.40 and $43.47, now 30–70% above consensus. His new target implies roughly 20× CY27 EPS of $32.29, and he sees a path for shares to effectively double over the next year if his bull‑case pricing assumptions play out.
He also highlighted Western Digital’s dual‑tracked UltraSMR/HAMR roadmap, which he believes investors continue to under‑appreciate, calling it a source of reliability and strength rather than a technology gap versus peers.
Critical Technical Levels for WDC Stock
WDC remains in a powerful uptrend. The stock trades 25.1% above its 20‑day simple moving average at $518.10, 44.4% above its 50‑day at $449.12, and 155.5% above its 200‑day at $253.77. That level of separation signals strong long‑term demand but also raises the risk of sharp pullbacks if buyers pause.
The moving‑average structure stays bullish, with the 20‑day above the 50‑day and a golden cross from July 2025 still intact. However, MACD has slipped below its signal line and the histogram is negative, a classic momentum‑cooling setup even as price holds elevated. The rally can continue, but it now depends more on fresh buying to sustain upside pressure.
Technically, WDC has cleared its prior 52‑week high at $602.54, which can flip from resistance into support if price retests it. The most recent swing high was set in June and the swing low in March, meaning the current advance extends a multi‑month uptrend rather than reversing weakness.
- Key Resistance: $602.54 — prior 52-week high from June that price has now cleared, making it a key “hold-above” level
- Key Support: $518.10 — near the 20-day SMA, a common first pullback area in strong uptrends
WDC Shares Are Soaring
WDC Price Action: Western Digital shares were up 14.70% at $645.69 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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