Crypto Craze Leads to Tech Shortage in an Unusual Place

Cryptocurrency mining has led to a large surge in demand for processing power. That’s been great for companies that manufacture those products. But some of today’s newer cryptocurrencies are using data storage in a larger way than in cryptos of the past.

  • Special: 3 Cryptos to Buy Instead of Dogecoin
  • That’s created a surging demand for hard drives, and reversed a declining sales trend for hard drives that occurred over the past few years on concerns that everything would simply move to the cloud.

    In particular a new cryptocurrency, Chia, has led to a surge in demand. Hard drive manufactures are already on the move, and many are betting shares will move far higher before the trend reverses.

    With rising demand in sight for some time to come, all players are likely to benefit. Of those that have moved the least in the past few weeks, Western Digital Corp (WDC) looks the most attractive to play this trend now.

    Since February, shares have traded in a range between the low $60s and low $70s. Although the company’s revenue has been flat over the past year, surging demand in recent weeks will likely allow shares to break out of its range and head higher.

  • Special: Wall Street buying frenzy on Under $5 Stock
  • Action to take: Investors can buy shares here, although the company doesn’t pay a dividend. The October $75 calls, trading for about $7.70 can likely deliver high double-digit gains if shares jump to a new trading range. That’s also a reasonable strike price, with the option having a high chance of moving in-the-money on a continued rally.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.