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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid the accelerating race to build AI infrastructure, a recent Zacks Investment Research report has highlighted promising investment opportunities in the semiconductor and data storage sectors. The report notes that while NVIDIA, AMD, and TSM remain industry leaders, focus is shifting toward companies providing essential storage solutions. Consequently, Western Digital and Seagate have been awarded a 'Strong Buy' (Zacks Rank #1) rating, driven by significant upside potential in AI-driven data storage demand.
This optimism for storage providers comes as the market observes valuation gaps, with firms like WDC and STX viewed as undervalued relative to chip giants. Per market data, peer competitor Intel (INTC) closed at $745.49 (close July 16, 2026). Comparing to previous quarterly results, Western Digital's recent earnings indicated improving operating margins fueled by demand for data-center SSDs, supporting the Zacks thesis regarding untapped value in the storage secondary play.
At the close of July 16, 2026, NVDA stood at $207.40, while STX reached $745.49 and WDC closed at $466.81. Traders should watch support levels for STX near its recent daily low of $739.47. With no immediate sector-specific catalysts in the upcoming economic calendar, market participants will look toward upcoming quarterly earnings reports to validate the projected growth in AI-related storage requirements.