US Stock Market Move | The concept of storage continues to strengthen. Western Digital Corporation (WDC.US) rose over 8%.

On Tuesday, the concept of storage continued to strengthen, Western Digital Corporation (WDC.US) rose more than 8%, SanDisk (SNDK.US) rose more than 5%, and Seagate Technology Holdings PLC (STX.US) rose more than 4%, all hitting new historical highs. In terms of news, Western Digital Corporation stated that its board of directors has approved an additional $4 billion for stock buybacks due to the surge in demand for its memory chips from artificial intelligence servers. UBS Group AG analysts predict that a "meaningful supply relief" in the global storage industry may not occur until around 2028. Before that, the structural demand brought by AI data center construction will continue to strengthen the prosperity and bargaining power of the Memory industry chain. In the short term, UBS Group AG suggests focusing on the two almost monopolistic HDD manufacturers Seagate and Western Digital Corporation. Analysts believe that both companies can be seen as a "short-term trading theme of the storage prosperity cycle", benefiting from the industry's high concentration, controlled supply, and price and profit flexibility brought by the periodic recovery in demand.