Market Analysis Summary: Focus on Memory Supply Amid AI Boom
Published: January 07, 2026
In the current trading landscape, attention is shifting towards memory supply constraints, particularly in light of the ongoing artificial intelligence (AI) boom. This article provides a detailed analysis of three key companies in the memory and storage sector: SanDisk (SNDK), Western Digital (WDC), and Seagate Technologies (STX).
SanDisk (SNDK) Technical Analysis
SanDisk has experienced a significant surge, gaining over 27% in a single day. Analysts from Bank of America have raised their price target for the stock from $340 to $390, indicating strong bullish sentiment. Despite a potential pullback in early trading, this is viewed positively as it presents a buying opportunity. Analysts suggest that any pullback to around $300 could be an attractive entry point, with expectations that the stock may eventually test the $400 mark following its recent gains.
Western Digital (WDC) Technical Analysis
Western Digital is also expected to see a pullback, mirroring the trends observed in the AI infrastructure market. The stock has seen a remarkable rise from approximately $23 to $219 since April 2025. Analysts believe that short-term pullbacks are likely and should be seen as buying opportunities. The 50-day Exponential Moving Average (EMA) is currently at the $163 level, which serves as a critical support point, although the stock is trading well above this level at present.
Seagate Technologies (STX) Technical Analysis
Seagate Technologies is anticipated to experience a pullback as well, driven by the increasing demand for flash SSD hard drives in data centers. The shift towards cloud computing is propelling the need for faster storage solutions. Analysts suggest that $300 is a key support level, with a preference for a pullback closer to $310 before considering a buy. The overall sentiment remains bullish, and shorting the stock is not recommended at this time.
Conclusion
The analysis of SNDK, WDC, and STX highlights the growing importance of memory supply in the context of the AI boom. Traders are advised to watch for pullbacks as potential buying opportunities, with expectations of continued upward momentum in these stocks as demand for memory solutions increases.