U.S. Stocks in Motion | Morgan Stanley and Other Investment Banks Rebut Toshiba Expansion Panic; Western Digital (WDC.US) and Seagate (STX.US) Rebound Sharply

Zhitong Finance APP has learned that on Monday, Western Digital (WDC.US) rose more than 7% in early trading, while Seagate Technology (STX.US) rose more than 5%. On the previous trading day, news of Toshiba's hard drive capacity expansion triggered a pullback in sector stocks, with both stocks falling more than 10%. Subsequently, Morgan Stanley and Bernstein successively released research reports refuting market panic. Both institutions believed that the market overreacted to the news of Toshiba's capacity expansion, and that the actual impact on industry supply was limited; AI agent tasks and physical AI are generating incremental storage demand, and the tight supply-demand pattern for HDDs continues. They maintained bullish ratings on Seagate and Western Digital, with Morgan Stanley listing Seagate as its top pick.