Benzinga - by MarketBeat, Benzinga Contributor.
The artificial intelligence (AI) boom has accelerated revenues for various companies in the computer and technology sector. The obvious benefactor and leader of the AI wave is Nvidia Co. (NASDAQ: NVDA), with its 90% market share of GPUs. AI requires heavy-duty processing power but also a massive amount of data to train AI models. This requires the ability to store oceans of data, as evidenced by the surge in revenues for Micron Technology Inc. (NASDAQ: MU), maker of DRAM, NAND and flash memory chips. The benefits continue to trickle down to the data storage device companies that buy mountains of memory storage chips to meet the insatiable demand in their businesses. Here are 2 leading data storage device makers that are thriving on the AI boom as their troughs are reversing back into peaks.
Western Digital
Western Digital Co.Western Digital also manufactures data center storage systems as well as consumer storage devices, including SSDs, USB drives and external hard drives. Their business is booming with the AI trend. The company has plans to separate its HDD, which focuses on traditional HDs and mechanical storage solutions, and Flash business, focusing on NAND flash memory, units into 2 separate companies.
AI Accelerating Turnaround
Raised Guidance
Re-raising Guidance
Goeckeler commented, "If we look at the guidance ranges we provided, we expect to be near the high end of guidance of the range we provided. But each business is performing better from a profitability point of view. A couple of points of additional gross margin in each business. All the rest of the numbers are within guidance ranges. So we expect this quarter, we expect on an EPS basis to exceed the high end of our guidance range."
Analyst Upgrade
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Daily Stair Step Bull Flags
The daily candlestick chart on WDC illustrates stair-step bull flag patterns. There are a series of 3 consecutive bull flags, each reaching higher highs. The most recent bull flag formed after peaking at $65.92 on March 6, 2024, forming a parallel channel down to $58.47 before gapping and going higher to $69.36. The daily relative strength index (RSI) is attempting to bounce off the 70-band. Pullback support levels are at $63.72, $58.47, $54.79 and $52.89.
Seagate Technology
Seagate Technology plcPure Storage Inc.Hewlett Packard Enterprise Co.HAMR Technology
The potential capacity of 5 to 10 Terabytes per square inch (Tbps) compared to the current 1 Tbps to 2 Tbps capacity. HAMR uses a small laser to heat a small spot in the hard drive, making it temporarily easier to write on, which enables the magnetic head to write data in a significantly smaller space than ever before. Get AI-powered insights on MarketBeat.
Mozaic 3+ HDD Platform
Sony Inc.Seagate Technology analyst ratings and price targets are at MarketBeat.
Daily Symmetrical Triangle
The daily RSI is starting to fall under the 60-band. Pullback support levels are at $89.02, $83.53, $75.61 and $69.09.
The article "2 Data Storage Device Stocks Thriving From the AI Boom" first appeared on MarketBeat.