Morgan Stanley Raises Western Digital Price Target to $380 on Strong AI Storage Demand

Generative and agentic AI are accelerating data growth, while companies are expanding cloud data centers and boosting demand for high-capacity storage equipment. Morgan Stanley said about 80% of data in cloud data centers worldwide still relies on HDDs, underscoring the critical role of hard drives in AI infrastructure and positioning Western Digital as a major beneficiary of industry growth.

As of July 20, 2026, Morgan Stanley had raised its price target for Western Digital to $380, citing strong AI storage demand and an improving supply-demand balance. The firm expects data center expansion and agentic AI applications to keep increasing storage-capacity requirements, supporting HDD shipments, pricing and profitability while providing medium- to long-term growth momentum for the storage industry.