Chips Are Critical for Today’s Technology – And So is This Overlooked Hardware

Chipmaker stocks continue to trend higher. Even with these companies making big moves over the last year, there’s still more room to run as there’s growth ahead. Technologies such as artificial intelligence ensure a bright future.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU
  • However, there are other hardware components that are critical to the success of a technology. And some of those names haven’t fared as well, since they don’t get the big attention that the chipmakers have.

    One key hardware component is memory storage. That could come from memory chips, or from disk drives. That’s where companies like Western Digital (WDC) earn their profits. And times could be good as new tech trends continue.

    The hard drive manufacturer has beaten the market in the past year with a 31 percent gain. However, that’s not as strong as how some of the chipmakers have performed. Shares could catch up as the semiconductor rally starts to cool off.

    As with many chip names, Western Digital is unprofitable at the moment, but may come off that this year as sales increase.

  • Special: Legendary CBOE Trader Reveals: Make This ONE Trade Every Time The Government Drops Economic Reports
  • Action to take: Investors may like shares at current prices, with an eye towards adding to that position on any drop lower. At the moment, WDC shares do not pay a dividend.

    For traders, the March $60 calls, last going for about $2.70, could see mid-double-digit returns or better on a further rally higher in WDC shares in the coming weeks.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU