Mar. 6 at 4:38 PM
Morgan Stanley released its latest IT hardware stock rankings, highlighting companies positioned to benefit from continued investment in technology infrastructure, particularly data center expansion and AI-related capital spending.
The bank pointed to strong demand for data storage and processing capacity as cloud providers expand infrastructure. Seagate Technology stands out for its exposure to cloud data center buildouts and recently reported strong fiscal Q2 results, with
$2.83 billion in revenue and
$3.11 EPS, both above expectations, prompting Cantor Fitzgerald to raise its price target.
Western Digital is also seen benefiting from rising AI-related capital spending, though analysts noted potential risks from memory price fluctuations. The company was recently upgraded to BBB- by S&P Global Ratings after reducing debt, while Morgan Stanley and Cantor Fitzgerald also raised their price targets.
$STX $WDC