Western Digital (NASDAQ: WDC) stock jumped 5% on Monday as Morgan Stanley labeled it a “Top Pick,” ousting NVIDIA Corporation (NASDAQ: NVDA).
Morgan Stanley has chosen Western Digital (WDC) as its current top investment preference, opting for it over NVIDIA Corporation (NVDA).
The firm has increased the price target for WDC from $52 to $73, indicating a potential 30% upside from the stock’s value at the time of the upgrade announcement.
Morgan Stanley stated,
“The valuation disparity between Western Digital and peers is extremely compelling, particularly in light of the second-half separation of the memory business, which should unlock the sum of the parts values. Business is getting better at a rapid rate, and there are pluses and minuses to the NAND cycle.”
In a separate development, Major indices have maintained their upward trajectory, spurred by the S&P hitting an all-time high on Friday, January 19, 2024, surpassing previous peaks set in January 2022. Technology shares have exhibited strong performance since the latter part of 2023, driven by anticipations of a rate cut by the Fed in 2024.
Western Digital (NASDAQ: WDC) will reveal its financial results for the second quarter of fiscal year 2024 after the market closes on Thursday, January 25, 2024.
As of Monday’s closing, WDC stock showed a 4.07% increase, with a trading volume of 14,721,045 (14.72 million) shares. This volume is well above the company’s daily average trading volume of 5.82 million shares.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
