Key Takeaways Shares of Western Digital and Seagate Technology surged Monday as Morgan Stanley analysts raised their price targets for the stocks citing AI-driven demand trends. It’s been a good year for investors in data storage stocks. Morgan Stanley analysts say artificial intelligence could make it even better. Why This Matters for Investors Morgan Stanley analysts said they believe "we are still in the middle" of an upturn for data storage demand as big tech firms' AI spending grows. That could leave room for hard drive stocks, which have a strong 2025, to rise further.