With the new Chia cryptocurrency driving HDD prices higher and stronger retail demand expected in June, Mizuho raises its price targets on Western Digital (NASDAQ:WDC) from $88 to $90 and Seagate (NASDAQ:STX) from $83 to $88.
The firm says Western Digital will likely see more gains due to its strong retail presence, while Seagate sells through distributors.
Mizuho warns that the demand spike could prove short-term unless Chia's strength continues, which could lead to HDD oversupply.
Western Digital shares are up 1% pre-market to $77.19. Seagate is up nearly 1% to $105.
Chia, which bills itself as an eco-friendly alternative to Bitcoin, is "farmed" with unused storage on a device, which is driving shortages of high-capacity HDDs.