After a year where anything tied to AI infrastructure seemed to go straight up, it's tempting to say the memory-and-storage trade is tapped out.

Western Digital Corp. (NASDAQ:WDC), Seagate Technology Holdings plc (NASDAQ:STX) and Sandisk Corp. (NASDAQ:SDNK) have each logged returns of more than 230% over the past 12 months, the kind of move that usually screams warnings like “overbought” or "late cycle."

But analysts at Bank of America indicate the rally may be less about momentum and more about a structural setup: AI-driven demand is still outrunning supply, keeping pricing firm and leaving room for another leg higher.

BofA Says Memory And Storage Stocks Can Still Run From Here

On Tuesday, Bank of America analyst Wamsi Mohan reiterated Buy ratings on both Western Digital Corp. and Seagate Technology, while lifting his price objectives to reflect improving fundamentals across the storage cycle.

For Western Digital, Mohan raised his price target from $197 to $257, implying 16% upside from current prices. He attributed the move to "increased confidence in revenue growth and margin expansion," along with "increased confidence in positive estimate revisions over the longer term."

BofA expects WDC to ...