Western Digital Corp (NASDAQ:WDC) stock is surging on Tuesday as investors aggressively buy the dip in memory and semiconductor stocks following a deep multi-day pullback.

Today’s sharp recovery is fueled by a sector-wide return to the artificial-intelligence trade ahead of high-profile technology earnings reports. The Nasdaq is up 1.73% while the S&P 500 has gained 0.76%.

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Broad Tech Recovery Fueling Memory Rebound

Positive momentum across memory chipmakers followed bullish analyst commentary on Sandisk Corp. Morgan Stanley analyst Joseph Moore said the recent pullback in U.S. memory stock presents an attractive buying opportunity, forecasting memory prices will rise at least 25% from the second quarter to the third quarter of 2026.

Additional support came from SK Hynix Inc (NASDAQ:SKHY) Chairman Chey Tae-won, who said AI-driven memory prices remain "abnormally high" and argued the industry should expand supply rather than maximize profits from current shortages.

Chey flagged expectations for overall memory demand to rise more than 50% to 60% next year, while AI-specific demand could climb 60% to 100%.

The boost also comes from Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), after Bloomberg, citing Nikkei, reported that Taiwan Semiconductor is planning to raise chip manufacturing prices by 5% to 10% in 2027.

The price increases are intended to offset higher costs for materials, equipment and capacity expansion driven by strong artificial intelligence demand.

Western Digital Earnings Preview for August

Looking further out, the next major catalyst for the stock arrives with the August 5 earnings report.

  • EPS Estimate: $3.27 (Up from $1.66 YoY)
  • Revenue Estimate: $3.69 Billion (Up from $2.60 Billion YoY)
  • Valuation: P/E of 29.2x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $463.91. Recent analyst moves include:

  • Citigroup: Buy (Raises Forecast to $800) (July 13)
  • Wells Fargo: Overweight (Raises Forecast to $730) (July 10)
  • Susquehanna: Neutral (Raises Forecast to $500) (July 8)

WDC Stock Price Activity: Western Digital shares were up 12.58% at $548.72 at the time of publication on Tuesday, according to Benzinga Pro data.

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