Western Digital Corp. (NASDAQ:WDC) stock jumped more than 4% Friday as technology stocks gained and investors returned to the memory and storage trade.
The move came despite a mixed broader market. The Nasdaq gained 0.09%, while the S&P 500 fell 0.31%. The Technology Select Sector SPDR Fund (NYSE:XLK) rose 0.62%, making technology the best-performing sector.
Western Digital also outperformed the broader technology sector, highlighting strong demand for select hardware stocks.
Memory Stocks Remain In Focus
Roundhill Investments Chief Investment Strategist Drew Pettit remains bullish on memory stocks following their recent pullback.
Pettit told CNBC that rising contract prices and stronger long-term estimates continue to support the sector. He said industry revenue could roughly triple by 2030.
The recent correction has also created a more attractive entry point as industry fundamentals continue to improve, Pettit said.
Western Digital has gained more than 400% over the past 12 months.
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Western Digital Technical Setup
Western Digital remains well above its longer-term trend line. The stock trades about 24% above its 200-day simple moving average of $372.79.
However, shares remain roughly 9% below the 50-day and 100-day averages. Those levels could provide resistance during a rebound.
Meanwhile, the relative strength index stands at 45.77. That reading points to neutral-to-soft momentum and leaves room for a move in either direction.
Resistance sits near $480, while support is around $430.50.
Analyst Outlook
The stock carries a Buy rating with an average price forecast of $649.79. Recent analyst moves include:
- Citigroup: Buy (Lowers forecast to $740.00) (Aug. 7)
- TD Cowen: Buy (Raises forecast to $540.00) (Aug. 6)
- UBS: Neutral (Lowers forecast to $525.00) (Aug. 6)
WDC Price Action: Western Digital shares were up 4.22% at $460.22 at the time of publication Friday, according to Benzinga Pro data.
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