Seagate Technology PLC (STX), Western Digital Corp (WDC): Do Not Invest in Computers, Invest in Hard-Disk Drives

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Tailwinds for Seagate and WD

Going back to Seagate Technology PLC (NASDAQ:STX), it should perform well in the future for the following reasons:

Solid-state drives are more expensive than regular magnetic hard-disk drives. It must be stated that Seagate is the king in HDDs.

The demand for storage media should be strong due to propagation of DVRs, video gaming consoles, digital camera, and music.

The “Cloud” technology is gaining popularity.

Western Digital Corp (NASDAQ:WDC) will also perform well in the future for these reasons:

The company just acquired sTec. This transaction places Western Digital Corp (NASDAQ:WDC) in a better position towards the development of SSDs. sTec owns a substantial number of patents and technology that will enable WD to continue the development of SSDs.

The company is the other HDD king! I personally enjoy the WD “Green” HDDs that work with minimal power requirements. On the contrary, “Black” HDDs perform much faster, but require more power. This gives the flexibility to the end-user to buy the product that best suits their needs.

The Foolish conclusion

The performances of Seagate Technology PLC (NASDAQ:STX) and Western Digital Corp (NASDAQ:WDC) are remarkable. Despite the decrease in PC sales, these companies are still experiencing strong demand for their products. For now, it is impossible to determine which offers the best investment prospects. Thus, I would recommend buying both companies as a basket for they will provide growth to your portfolio.

The article Do Not Invest in Computers, Invest in Hard-Disk Drives originally appeared on Fool.com and is written by Robinson Roacho.

Robinson Roacho has no position in any stocks mentioned. The Motley Fool owns shares of Western Digital. Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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