$NVIDIA(NVDA)$ I don't need to post here every day. Honestly, I'm not focused on daily, weekly, or even monthly price swings. While the stock fluctuates, I'm always looking at the annual gains. The fact is, it's been up 11 out of the past 13 years. That's a point worth repeating.
US stocks opened higher, with chip stocks leading the gains. The Dow is up 0.11%, the S&P 500 is up 0.32%, and the Nasdaq is up 0.78%. $Western Digital(WDC)$ is up over 5%, $Broadcom(AVGO)$ gained 3.5% after its Apple deal extension to 2031, and $SanDisk Corp.(SNDK)$ is up 4%. Risk appetite looks strong, with semiconductors still driving the market.
The storage cycle is turning, and it feels like the market is still underestimating what's ahead. AI isn't just about GPUs; it creates a huge need for high-capacity storage to house, train, and serve massive datasets. Every AI cluster needs a storage backbone, and Western Digital is positioned to benefit from that long-term trend. You can see a few key points: enterprise storage demand is improving, AI-driven data growth is accelerating, HDDs remain essential for hyperscale and cloud economics, flash demand continues its recovery as pricing normalizes, and operating leverage could significantly boost earnings as the cycle strengthens. The world is creating more data than ever, and that data has to live somewhere. AI, cloud, enterprise, and hyperscale aren't slowing down. Sometimes the best
$Western Digital(WDC)$ The recent price movement seems like a normal fluctuation. We were at $530 not long ago. The fundamentals remain solid: $12B revenue, 55% profit margin, $34 revenue per share, 45% quarterly growth, and a forward P/E of $31. A key point is the relatively small float of 342M shares, with over 95% held by non-retail investors. From where I stand, it's a strong business in the current environment, with memory now being high-end infrastructure. I'm holding my shares and not letting go of them at these levels. The stock could reach over $800 in the coming months.
$NVIDIA(NVDA)$ NVDA seems fairly valued right now, with a relatively low forward P/E. I don't see much downside from the current level. The data center build-out is still in its early to mid stages, and demand for their products remains strong.