11:19 AM EDT, 05/23/2025 (MT Newswires) -- Western Digital ( WDC ) looks "well-positioned" to capitalize on data center buildout despite lacking technology against Seagate Technology (STX), Morgan Stanley said in a Friday note.

The company's data center expansion plans are "stronger" than ever and compute demand is rising, thus resulting in exponential growth for data creation, the note added.

Western Digital ( WDC ) looks poised to speed up capital returns, either through a higher stock repurchase program or through a "more significant" dividend hike, the note said.

Morgan Stanley also said that although Western Digital ( WDC ) is at least a year behind its peer Seagate Technology in HAMR technology, it will still capitalize on this "broad trend", which the market is underappreciating.

Morgan Stanley raised Western Digital's ( WDC ) price target to $70 from $54 and maintained its overweight rating on the stock.

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