Core Insights - Morgan Stanley analysts have raised price targets for Seagate Technology and Western Digital, indicating strong growth potential for both companies in the hard disk drive (HDD) market [2][5] - The HDD market is currently undersupplied by up to 10%, which is driving higher prices and demand forecasts through the first half of 2027 [4][5] - The increasing demand for data storage, driven by cloud infrastructure spending and AI technologies, positions HDD makers as beneficiaries in the evolving tech landscape [3][5] Company Performance - Seagate's stock has increased by 168% year-to-date, while Western Digital's stock has risen by 160% [6] - Both companies have received an "overweight" rating from Morgan Stanley, with new price targets set at $265 for Seagate and $171 for Western Digital [2][5] - Seagate holds an IBD Composite Rating of 98, ranking second in the Computer-Data Storage group, while Western Digital also has a rating of 98, placing it third [7] Market Trends - The Computer-Data Storage industry has performed well, ranking third out of 197 industry groups tracked by IBD, with a 40% increase overall year-to-date [8] - The demand for HDDs is being bolstered by the perception that these stocks are less cyclical than in the past, potentially allowing for higher price-to-earnings multiples [5] - The spinoff of Sandisk by Western Digital has also contributed to the positive performance of the group, with Sandisk shares up over 200% since its Nasdaq debut [9]

Group 1 - Micron stock, along with Seagate Technology, Western Digital, Pure Storage, and NetApp, is highlighted in the analysis as the stock market rally reaches record highs [1] - The stock picks are sourced from Investor's Business Daily's Computer-Data Storage industry group, which is noted for its strong performance [1] - NetApp's stock has surged 70% over the last five months, riding the rising tide of AI [4] Group 2 - The Dow struggled to gain on Friday, while Apple experienced a decline after its iPhone event [2] - The Nasdaq achieved a record high, indicating a strong performance in the tech sector [4] - Micron is identified as the IBD Stock of the Day, entering a buy zone after a breakout [4]