SanDisk's 15min chart triggers Bollinger Bands Narrowing, KDJ Death Cross.

Based on the 15-minute chart of Sandisk, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of stock price fluctuations. Additionally, the KDJ indicator has triggered a death cross at April 23, 2023, at 15:15. This suggests that the momentum of the stock price is shifting towards the downside and has the potential to further decrease.

The computer storage devices industry is poised for robust growth, driven by the expanding demand for cloud computing, Internet of Things (IoT), auto, connected devices, virtual reality, and artificial intelligence (AI). These factors are propelling the demand for robust data storage solutions, bolstering the computer storage product requirements [1].

Within the Technology sector, the Zacks-defined Computer-Storage Devices industry is currently within the top 12% of the Zacks Industry Rank, indicating strong performance. The industry's growth is expected to outperform the market over the next three to six months [1].

Super Micro Computer Inc. (SMCI) and Western Digital Corp. (WDC) are two stocks recommended by Zacks Investment Research, given their attractive multiples and significant short-term price upside potential. These companies are well-positioned to benefit from the industry's growth trajectory.

Super Micro Computer Inc. (SMCI)

Super Micro Computer is a total IT solution manufacturer for AI/ML, Cloud, HPC, Storage, and 5G/Edge technologies. The company's rack-scale plug-and-play Total AI and IT Solutions, particularly those optimized for NVIDIA’s HGX-H100, are gaining substantial traction. SMCI’s servers are optimized for NVIDIA’s high-performance graphics processing units, including the flagship Blackwell platform, which is expected to power the next generation of AI clusters and hyperscale data centers [1].

SMCI’s liquid-cooled server solutions are gaining momentum, addressing power and thermal challenges for large-scale AI workloads. The company's focus on modular and rack-scale solutions enables customers to scale efficiently, driving repeat business and boosting customer retention. SMCI currently sports a Zacks Rank #1 (Strong Buy) [1].

Western Digital Corp. (WDC)

Western Digital is well-positioned to benefit from increasing sales momentum across the Cloud end-market, fueled by elevated demand for nearline HDDs. Lower operating expenses and solid AI uptake are driving its margin performance. The company has formed a separate entity, Sandisk, to further expand its Flash business [1].

WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, boosting content growth in smartphone, gaming, PC, and consumer markets. Increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, providing ample business opportunities [1].

Technical Indicators for Sandisk

Based on the 15-minute chart of Sandisk, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of stock price fluctuations. Additionally, the KDJ indicator has triggered a death cross at April 23, 2023, at 15:15, suggesting that the momentum of the stock price is shifting towards the downside and has the potential to further decrease [2].

References:

[1] https://finance.yahoo.com/news/buy-2-ai-driven-storage-120600733.html
[2] https://finance.yahoo.com/news/buy-2-ai-driven-storage-120600733.html

Ask Aime: What impact does Sandisk's narrowed Bollinger Bands and KDJ death cross indicate on the stock price?