Bank of America analyst Wamsi Mohan reiterated Buy ratings for Seagate and Western Digital, raising price targets to $400 and $257 respectively. He expects both companies to post quarterly results in the upper half of their guidance ranges, driven by strong data center demand and tight supply conditions.

BofA cites continued strength in data center revenues and better seasonal trends for Seagate, which shipped about 40 EBs of HAMR technology. The firm notes Seagate is running at max utilization, allowing it to sell incremental supply at higher market prices. For Western Digital, Mohan models gross margins rising to 44.8%.

The bullish call reflects a broader recovery in the storage sector, where demand for AI and cloud infrastructure is outpacing supply. Investors will watch for the companies' upcoming earnings reports to see if they can sustain this pricing momentum and meet the elevated analyst expectations.