Western Digital Stock Surges on Zacks Buy Upgrade and Evercore Reiteration After 55% Revenue Jump

Western Digital shares rallied sharply on October 27, with WDC gaining more than 7% on the session, driven by a confluence of positive analyst actions and strong recent earnings momentum. Zacks upgraded the stock to a Rank 2 (Buy), citing an upward trend in earnings estimates as the primary catalyst, while Evercore ISI reiterated its rating on the company with a focus on its capital expenditure outlook.

The analyst attention follows Western Digital's fiscal first-quarter 2027 results, which showed revenue rising 55% year over year, a figure that has drawn comparisons to peers Sandisk, Micron, and Seagate, all of which were standout performers earlier in 2026 as AI infrastructure buildout drove insatiable demand for storage. The company's earnings per share also exceeded expectations, underscoring the pricing power and margin expansion that AI and cloud demand have enabled.

Despite the session's gains, Western Digital stock remains more than 50% below its prior high, a gap that has prompted debate among analysts about whether the current valuation represents a buying opportunity or reflects lingering risks around HDD demand and the industry's ongoing transition from ePMR to HAMR technology. Morgan Stanley and Wells Fargo both maintained Overweight ratings after the recent earnings report, though Citi trimmed its price target to $660 from $740.