Core Insights - Data storage stocks, particularly Western Digital and Seagate Technology, have seen significant gains in 2023, with shares more than doubling in value since the beginning of the year [2][4][5] - Morgan Stanley analysts have raised their price targets for both companies, citing strong demand driven by cloud infrastructure spending and the growing needs of artificial intelligence [2][5] Company Performance - Western Digital's shares increased over 9% to around $116, nearing an all-time high, while Seagate's shares rose about 5% to around $227, just below last week's record close [4] - Both companies are now among the best-performing stocks in the S&P 500 for 2025 [4] Analyst Forecasts - Morgan Stanley has set a new price target for Western Digital at $171, up from $99, indicating a potential upside of 60% from the previous closing level [5] - Seagate's price target has been raised to $265 from $168, suggesting a 22% upside from Friday's closing levels [5] Market Trends - Analysts believe the demand for data storage is still on an upward trajectory, primarily due to increased AI spending by major tech firms [3] - The anticipated growth in cloud infrastructure and data retention needs is expected to sustain this demand for a longer period [2][3]