Western Digital Corp. (Western Digital (WDC)) shares were up again on Tuesday, building on Monday's more than 11% rally after Cantor Fitzgerald raised its price forecast. The firm cited sustained demand from artificial intelligence infrastructure spending as a key driver.

The Nasdaq gained 0.65%, while the S&P 500 advanced 0.13% on the day.

Cantor Sees AI Spending Driving Long-Term Growth

Cantor Fitzgerald raised its price forecast on Western Digital to $900 from $660 and maintained an Overweight rating. The firm said the AI infrastructure buildout is driving a durable, generational semiconductor cycle, with supply chain constraints extending demand. Cantor now expects global semiconductor industry revenue to reach about $3 trillion by calendar 2029 and potentially exceed $3.5 trillion by calendar 2030.

Strong Uptrend Remains Intact

Western Digital continues to trade in a well-defined long-term uptrend. The stock remains above its 20-day, 50-day, 100-day and 200-day simple moving averages, signaling sustained buying interest. The shares are trading about 127% above the 200-day SMA of $285.90. In addition, the 20-day SMA remains above the 50-day SMA, while the 50-day SMA sits above the 200-day SMA. That alignment typically reflects a healthy long-term bullish trend.

Momentum indicators are more mixed. The MACD remains below its signal line, and the histogram is negative, suggesting bullish momentum has weakened following the recent rally. The stock formed a swing low in April before climbing to a swing high and a new 52-week high in June. The relative strength index also moved into overbought territory during June, indicating the stock could become more vulnerable to short-term pullbacks.

Traders may watch resistance near the 52-week high of $799.87. Initial support sits near the 20-day SMA at $613.49.

Earnings And Analyst Outlook

Western Digital is expected to report earnings on or around July 29. Wall Street expects earnings of $3.27 per share, up from $1.66 a year earlier, on revenue of $3.70 billion compared with $2.60 billion last year. The stock trades at about 39 times earnings, reflecting a premium valuation.

Analysts maintain a consensus Buy rating with an average price forecast of $527.50. Recent research notes include Cantor Fitzgerald raising its price forecast to $900 on June 29, while Morgan Stanley and JPMorgan each lifted their forecasts to $650 earlier in June.

Momentum and ETF Exposure

According to market data, Western Digital scores highly for momentum at 99.65 and quality at 97.78. However, its value score stands at 5.19, suggesting much of the positive outlook may already be reflected in the share price. The growth score is 14.69.

The stock also represents a meaningful holding in several exchange-traded funds, including the Roundhill Memory ETF (DRAM), Castellan Targeted Equity ETF (CTEF) and ARS Focused Opportunities Strategy ETF (AFOS). Large fund flows into or out of these ETFs could affect demand for Western Digital shares.

WDC Price Action: Western Digital shares were up 1.15% at $659.40 at the time of publication on Tuesday.