AI growth has pushed up memory and storage shares, as both are needed to run AI systems and handle large data loads. The article names Micron Technology and Seagate Technology as two companies linked to this demand.<\/p>\n
Micron shares are up more than 70% year-to-date and trade at 8.4x forward earnings. Its HBM3E can move 1.2TB of data per second, and Micron began mass production of its 24GB 8-High HBM3E in early 2024.<\/p>\n
HBM3E uses 30% less power than peers, and all Micron HBM capacity for 2026 is sold out. HBM4 targets over 2.8TB\/s and more than a 20% power-efficiency improvement over HBM3E, with mass production starting in April 2026 and prices rising by over 50%.<\/p>\n
The article says 90% of data is stored on hard disk drives (HDDs), which are up to 6x cheaper per TB than SSDs. It states Seagate is the world\u2019s largest HDD maker, and its Mozaic platform delivers over 4TB per platter.<\/p>\n
It adds that Seagate nearline drives are sold out for 2026. It also notes that hyperscaler capital expenditure forecasts can affect demand and market pricing for both firms.<\/p>\n
With Micron’s stock showing such strong momentum, we believe using options is the best way to approach it. The stock is already trading above $185, but its new HBM4 memory is just beginning mass production, suggesting more upside is possible. We are seeing a significant increase in call option volume, especially for contracts expiring in the late summer.<\/p>\n
Given the sharp run-up from last year, implied volatility is high, which makes selling premium an attractive strategy. Selling cash-secured puts on any dip allows us to either acquire shares at a lower cost basis or simply keep the premium if the stock remains strong. Looking back at the patterns in 2025, this has been an effective way to enter high-flying semiconductor names.<\/p>\n
Seagate is also in a powerful position, as its advanced hard disk drives are sold out for the rest of 2026. Recent industry data shows that data center storage demand has grown by over 40% in the last year alone, which directly benefits Seagate\u2019s bottom line. For Seagate, we are looking at bull call spreads to limit our initial cost while capturing gains if the stock continues its climb.<\/p>\n
The biggest risk to this entire trade is a slowdown in spending from the big cloud companies. We are watching the capital expenditure forecasts from the hyperscalers like a hawk, as any sign of weakness could hit these stocks hard. We all remember how the market sold off in late 2025 when one cloud provider merely hinted at moderating growth, so we are keeping some powder dry for protective puts ahead of their earnings calls.<\/p>\n","protected":false},"excerpt":{"rendered":"
AI demand boosts Micron and Seagate: HBM memory and HDD storage capacity sold out through 2026.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48691","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t