Western Digital Corp (WDC) shares surged to a new all-time high on Thursday, climbing to nearly $436 as investors piled in ahead of the company's own earnings report due after the closing bell. The stock was up 5.46% to $426.52 at the time of publication, riding a wave of optimism that started with a stellar quarter from rival Seagate Technology.

The broader market was modestly positive, with the Nasdaq up 0.07% and the S&P 500 gaining 0.41%.

Seagate's Blowout Quarter Sets the Tone

The catalyst for Thursday's move was Seagate Technology Holdings PLC's (STX) fiscal third-quarter results, which blew past expectations. Seagate reported revenue of $3.11 billion, up 44.1% year-over-year, driven by insatiable demand for data storage from AI and cloud data centers. That kind of performance is a strong leading indicator for Western Digital, which competes in the same hard disk drive and NAND flash memory markets.

Western Digital's Earnings and Buyback Boost

Western Digital is set to release its own fiscal third-quarter results after the market closes on Thursday. According to consensus estimates, the company is expected to report earnings of $2.39 per share, a significant jump from $1.36 per share in the same quarter last year. Revenue is also expected to show strong growth, though exact figures weren't highlighted in the pre-earnings chatter.

Adding to the bullish narrative, Western Digital recently strengthened its capital return program. On February 3, the company's board authorized an additional $4 billion in share repurchases, signaling confidence in its financial health and future prospects.

Technical Levels to Watch

From a chart perspective, Western Digital is trading just below its 52-week high of $441.99. The stock is currently 20.7% above its 20-day simple moving average (SMA) and 64.3% above its 100-day SMA, indicating strong short- and medium-term momentum. The relative strength index (RSI) sits at 73.74, which is in overbought territory (above 70) but not yet at extreme levels that would typically signal an imminent reversal.

The longer-term technical picture remains bullish. The 50-day SMA crossed above the 200-day SMA back in July—a classic golden cross pattern—and the gap has only widened since. Over the past 12 months, Western Digital shares have surged an eye-popping 890.13%.

Key levels to watch:

• Resistance: $442 (just above the current all-time high)
• Support: $360 (a level that has held in recent pullbacks)

With earnings on deck and the stock at record highs, all eyes will be on Western Digital's results and forward guidance to see if the momentum can continue.