AI-driven storage device stocks are projected to benefit from industry growth and offer short-term rewards

From Zacks Investment Research: 2024-09-06 09:20:23

The computer storage devices industry is set to benefit from cloud computing, IoT, AI, and more. Gartner projects IT spending to reach $5.26 trillion by 2024, with significant growth in data center systems spending. Three major storage companies to watch are Super Micro Computer, Western Digital Corp, and Pure Storage Inc.

Super Micro Computer leads in high-performance rack servers for AI applications, with expected revenue growth of 87.5% and earnings growth of 51.7% for the current year. Western Digital is seeing success in its HDD and Flash businesses, with revenue and earnings growth rates of 35.4% and over 100% respectively expected for this year. Pure Storage is driving growth through FlashBlade solutions and DRaaS offerings, with revenue and earnings growth rates of 10.5% and 16.2% expected for this year.

Investors are eyeing significant upside potential for these stocks, as each offers short-term price appreciation opportunities. Super Micro Computer, Western Digital, and Pure Storage all have a Zacks Rank #3 (Hold) and an average price target well above their current closing prices.



Read more at Zacks Investment Research: 3 AI-Driven Storage Device Stocks in Focus to Maximize Your Returns – September 6, 2024