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Pro Analysis

Western Digital to surge more than 30% on flash memory chip shortage, JPMorgan says

The hard drive assembly line at Western Digital.
Shepard Sherbell | Corbis | Getty Images
The hard drive assembly line at Western Digital.

Investors should buy Western Digital shares because the company's earnings next year will come in significantly above current expectations, according to JPMorgan, which upgraded the company to overweight from neutral.

"We expect the company to benefit from the ongoing NAND [flash memory] shortage. In addition, we note that the PC market is improving," analyst Rod Hall wrote in a note to clients Tuesday.