Shares of storage chip companies saw a significant rebound on Monday following a period of being oversold. Western Digital (WDC.US) led the gains, rising by 8%. Seagate Technology (STX.US) advanced more than 5%, while SanDisk (SNDK.US) and Micron Technology (MU.US) both gained over 2%.

Catalyst for the Move

The rally was supported by a series of target price increases from several Wall Street investment banks. Analysts at Cantor Fitzgerald raised their price target for Western Digital from $660 to $900. Melius Research initiated coverage with an even more bullish outlook, assigning a top target of $1,050 and stating the company stands to benefit substantially from the ongoing build-out of AI infrastructure. In a separate move, Goldman Sachs significantly increased its target for SanDisk from $1,200 to $2,200.