Analyst firm Bernstein upgraded Western Digital (WDC) to Outperform from Market Perform, labeling a recent sharp sell-off in memory and storage stocks as an attractive buying opportunity. The sell-off was triggered by a combination of broader tech sector weakness and the unveiling of Google's TurboQuant AI memory compression algorithm, which spooked investors about future demand for storage hardware.
Western Digital's stock fell 8.6% on Monday, March 30, 2026, closing at $251.67, and was down as much as 21% from recent highs. Seagate and Sandisk saw similar declines of 17% and 26%, respectively. Bernstein argues the market overreacted, stating TurboQuant has "zero impact to HDD demand" and only a negligible, long-term impact on NAND flash memory demand.
The firm raised its price target for Western Digital to $340 from $170. For Seagate, Bernstein maintained an Outperform rating and raised its price target to $620 from $500. Sandisk's Outperform rating and $1,000 price target were reaffirmed. Bernstein now expects the combined revenue of Western Digital and Seagate to grow at a 24% compound annual growth rate from FY2025 to FY2030, driven by strong AI storage demand.
Other analysts echoed a positive outlook. Cantor Fitzgerald raised its WDC target to $420 (Overweight) following the company's Innovation Day, while Morgan Stanley lifted its target to $369. S&P Global upgraded Western Digital's credit rating to BBB- with a stable outlook after the company exchanged 5.8 million Sandisk shares (valued at $545 each) for debt and redeemed all outstanding 4.75% Senior Notes due 2026.
Seventeen analysts have recently revised earnings estimates for Western Digital upward. The company is expected to report earnings on April 29, with projected EPS of $2.30, up from $1.36 a year ago, on revenue of $3.23 billion.
