Shares of Western Digital hit a 52-week high after Morgan Stanley’s semiconductor-industry analyst made the stock his top pick.
The stock rose 7.2%, to a high of $58.73, in early trading, its highest level since June 2022.
Analyst Joe Moore said in a research note on Monday that the valuation disparity between Western Digital and its peers is extremely compelling, particularly given that the spin off of its memory business in the second-half of the year should “unlock sum of the parts values.”
Moore said the business is getting better at a rapid rate and now sees it overtaking Nvidia as his top pick among semiconductor businesses, even though he remains very positive on Nvidia’s prospects too.