Key Takeaways
- Micron Technology, Western Digital, and Seagate Technology saw their stocks climb Thursday afternoon in the wake of price-target hikes from Wall Street analysts, who said growing AI demand and persistent shortages of data storage hardware could benefit the companies.
- The gains came on a down day for the tech sector and U.S. stocks broadly.
Growing demand for artificial intelligence and persistent shortages of memory and data storage solutions could mean bigger gains for providers of the hardware, according to Wall Street AI bulls.
Micron Technology’s (MU) stock surged to an all-time high Thursday, boosted by price-target hikes from analysts at Citi and UBS. Hard-drive makers Western Digital (WDC) and Seagate Technology (STX) saw their stocks climb after price-target boosts from Wedbush.
The trio were among the leading gainers in the S&P 500 Thursday afternoon, a bright spot in a down day for the tech sector and broader markets amid worries about an ongoing federal shutdown and trade tensions between the U.S. and China.
Why This Matters for Investors
Enthusiasm regarding the popularity of AI technology has lifted well-known big tech shares. But some of the biggest beneficiaries of booming AI demand have been “pick-and-shovel” plays that provide the underlying hardware and energy data centers need to support AI models.
“Intensifying” shortages in the face of booming demand could mean more upside for Micron, which supplies memory solutions for AI chip leaders like Nvidia (NVDA) and Advanced Micro Devices (AMD), said UBS, which raised its target for Micron to a Street high of $245. Citi, which bumped its target to $240 from $200, said Micron could be next in line to score a big contract with ChatGPT maker OpenAI after recent deals with Nvidia, AMD, and Broadcom (AVGO).
Wedbush analysts lifted their target for Western Digital to $135 from $90, and Seagate to $260 from $175, saying they believe the hard drive makers could see higher pricing and margins through 2026 and beyond “given an underlying shortfall in supply that appears unlikely to be alleviated” for years.
Wall Street has been broadly bullish on all three stocks, with a majority of analysts tracked by Visible Alpha issuing “buy” ratings for Micron, Seagate, and Western Digital, which have pulled ahead of analysts’ mean targets with their recent gains.
Shares of Micron and Seagate have more than doubled in value in 2025. Western Digital shares have nearly tripled, putting them among the best-performing stocks in the benchmark index for the year.