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Western Digital Corp. (WDC) shares jumped more than 4% on Friday, as tech stocks found their footing and investors circled back to the memory and storage trade.
The move came even as the broader market was mixed. The Nasdaq eked out a 0.09% gain, while the S&P 500 slipped 0.31%. The Technology Select Sector SPDR Fund (XLK) rose 0.62%, making tech the day's best-performing sector. Western Digital's pop outpaced even that, a sign that demand for select hardware names is running hot.
Roundhill Investments Chief Investment Strategist Drew Pettit is staying bullish on memory stocks after their recent pullback. He told CNBC that rising contract prices and stronger long-term estimates continue to support the sector. Pettit added that industry revenue could roughly triple by 2030.
The recent correction, he said, has created a more attractive entry point as industry fundamentals keep improving. For Western Digital, the long-term picture looks even brighter: the stock has gained more than 400% over the past 12 months.
On the charts, 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.
But shares are still roughly 9% below their 50-day and 100-day averages, which could act as resistance during a rebound. The relative strength index sits at 45.77, pointing to neutral-to-soft momentum and leaving room for a move in either direction.
Resistance is near $480, while support is around $430.50.
The stock carries a Buy rating with an average price forecast of $649.79. Recent analyst moves include:
WDC Price Action: Western Digital shares were up 4.22% at $460.22 at the time of publication Friday, according to market data.
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