SNDK, WDC and STX Forecasts – AI Data Center “Parts” Looking Soft Premarket

SanDisk (SNDK) Technical Analysis

The market for SanDisk looks like it is going to be a little soft during the trading session open on Tuesday, but I do not know that this has anything at all to do with SanDisk and probably everything at all to do with the Middle East and the latest headlines, as it looks like we are escalating yet again.

If that is going to be the case, it should drive interest rates higher, currently sitting at 4.333%, and that puts a little bit of heaviness on technology stocks in general. SanDisk of course has gotten a boost recently in the prospect of supplying so many AI data centers, so I do think there is demand, but at this point in time a short-term pullback I would anticipate as being a potential buying opportunity.

Western Digital (WDC) Technical Analysis

Western Digital showed a lot of exhaustion during the session on Monday and now finds itself likely to open up below the $300 level. This pullback should be a buying opportunity as well with the 50-day EMA at $267.64 as a potential floor, assuming we even get that low. I would be a buyer of the dips; I do not have any interest in trying to short this market. We could be entering more or less a consolidation phase for the time being though.

Seagate Technology (STX) Technical Analysis

Seagate Technology looks like it is going to drop to fill most of that gap pretty quickly during the trading session on Monday that occurred. The $429 region would be an area where you would expect to see buyers. I do think eventually that is exactly what you get, but I also recognize that you have to be very cautious here.

There are a lot of frayed nerves in the markets right now and I believe that value hunters are out there, but I also believe that the next headline coming out of Iran could send the market down pretty quickly, so be aware of that. This has been a fairly stable performer though.

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