$Seagate Technology PLC(STX)$ KOSPI up 4% looks like a bit of a break. With a green day and earnings on deck, we may reclaim that 7 handle and bring $Western Digital(WDC)$ along. This is what we've been waiting for.
$Western Digital(WDC)$ 381.88This is the spot. If we can close above this level, $440 will be the next resistance. After $381.88, the bulls will take over and the bull flow will start.
$Western Digital(WDC)$ Wonder what the Q-Day impact on HDDs looks like. Q-Day is the point when a sufficiently powerful quantum computer can break widely used public-key encryption like RSA, Diffie-Hellman, and elliptic-curve cryptography. Security experts are worried about harvest now, decrypt later attacks, where encrypted data gets collected today and stored until quantum computers can decrypt it. That means lots of cheap long-term storage that doesn't have to be blistering fast. Organizations are already preparing by adopting post-quantum cryptography.
$Seagate Technology PLC(STX)$ $Western Digital(WDC)$ The earnings report confirmed that HDD demand is massive and supply shortages are severe. After STX releases its earnings, it should reaffirm this and solidify its technological leadership, which is further backed by the recent news on SMR. Since STX is already past its heavy capex phase and, thanks to new technologies, is less vulnerable to rising component costs, there is a case for a 15–20% post-earnings surge. If capex confirmations from Microsoft, Google, and Amazon follow, STX could climb to $800–$900.
$Western Digital(WDC)$ There's no inventory problem here. We're in a new era of perpetual HDD demand, and this is only going to keep growing as demand continues.
$Western Digital(WDC)$ Bulls seem to be waking up after a long stretch of quiet trading, but volume still looks light here. A stronger push would probably tighten the squeeze on the short side as price moves up.
$Western Digital(WDC)$ Storage demand will keep increasing and this stock will come through strong, slow and steady over the next few weeks—if STX moves up by $100, Western is bound to move up by at least $50 in the short term.
$Western Digital(WDC)$ October rate hike looks unlikely. Warsh will probably put a positive spin on the economy. Gas prices are dropping in NC. Midterms will be decided soon, and it doesn't matter which party wins — it just needs to be over, no more uncertainty. In 21 of the past 21 midterms, the S&P 500 turned positive from November to January and kept going through June. I'll take those odds. WDC smashed earnings, and that should start paying off soon.
$Western Digital(WDC)$ Sentiment is so bad that someone actually refused to get assigned my shares, and I still have them. Now the stock is up. Can't make up how afraid people are.
$Arbe Robotics Ltd.(ARBE)$ $NVIDIA(NVDA)$ Did anyone else notice the front bumper of the ID Buzz in Jensen's keynote? There were two large Arbe-sized radars with a smaller radar squeezed between them. Hopefully there's more to come on this.