3 Stocks To Snap Up As Computer Storage Devices Show Promise

Encouraging trends in PC shipments and solid momentum in cloud computing, IoT, auto, connected devices, VR as well as AI necessitate the need for robust data storage solutions required to harness the power of big data.

This has bolstered demand for computer storage products, which favors the prospects of prominent industry players, including Seagate (STX Quick Quote STX - Free Report), Western Digital (WDC Quick Quote WDC - Free Report), and NetApp (NTAP Quick Quote NTAP - Free Report).

Further, the democratization of higher internal memory smartphones, faster Internet speed, and 5G is likely to act as a tailwind for the industry participants.

Moreover, rapid deployment of 5G networking is driving the proliferation of the Internet of Things (IoT), Advanced Driver Assistance Systems (ADAS), and Augmented Reality/Virtual Reality (AR/VR) devices. This, in turn, holds promise.

Thereby, the outlook for the Zacks Computer-Storage Devices industry looks encouraging at the moment. Nevertheless, persisting impacts of coronavirus pandemic-triggered supply chain disruptions are an overhang.

Industry Description

The Zacks Computer-Storage Devices industry comprises companies that design, develop, manufacture and market a broad range of hard disk drives (HDDs) and solid-state drives (SSDs) utilized in PCs, laptops, mobiles, servers, network-attached storage devices, video game consoles, digital video recorders and a host of other consumer electronic devices.

Some of the industry participants, including Pure Storage (PSTG Quick Quote PSTG - Free Report) and NetApp, also provide software-defined all-flash solutions that are uniquely fast and cloud-capable. There are others that offer high-performance memory subsystems, enterprise storage, and data management software as well as hardware products and services.

The industry players also provide purpose-built servers, which are utilized for storing and accessing data over a shared network or through the Internet.

4 Trends Shaping the Future of the Computer – Storage Industry

Continued Momentum in PC Shipments to Boost Growth Prospects: Improving trend in PC shipments in 2021, due to coronavirus crisis-induced demand, is likely to positively impact business prospects of the industry participants. This is because demand for HDDs in manufacturing PCs is the highest and companies in this industry, including Seagate and Western Digital, derive bulk of their revenues from the sale of such devices. Per the latest IDC report, PC shipments in first-quarter 2021 increased 55.2% year over year to 84 million units. Moreover, improving NAND flash pricing trends owing to COVID-induced supply chain constraints is a tailwind.

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