SNDK, STX and WDC Forecasts – AI Hype Meets Reality

SNDK Technical Analysis

Sandisk looks like it is going to be a bit soft based on pre-market trading as OpenAI has openly admitted that there is a good shot that the data center spending is not the solution for artificial intelligence. In fact, OpenAI has missed key revenue and user targets in its sprint towards an IPO and with that being the case, I think it shows that there is a real problem in artificial intelligence.

Math just does not work with the data center spend, and that will directly influence companies like Sandisk that supply these AI data centers. In fact, when you look around, it is a shockingly small percentage of the planned centers that have actually begun construction because of the cost involved. Sandisk is likely to drop towards the $1,000 level to test that as support as a result.

Seagate Technical Analysis

Seagate looks like it is going to open negative as well. I think this one could drop a little bit, maybe down towards the $525 level or so. It is a perfectly normal pullback but there are a lot of concerns when it comes to OpenAI admitting what is going on.

Furthermore, we also have to keep in mind that there is earnings call at the end of the session, so a little bit of a pullback ahead of that probably makes sense regardless.

Western Digital Technical Analysis

Western Digital looks like it is going to pull back below the $400 level on Tuesday, with an earnings call on Thursday after the close.

I think this is a situation where you are looking to buy dips, but you probably want to see that earnings call out of the way first. We could drop $20, maybe even $30 in the meantime. Therefore, just being patient and waiting for a bounce after earnings, assuming that we get it, would be the proper move.

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