In fact, according to analysts at Bank of America, the stock could test $300 thanks to growing demand from data centers and artificial intelligence.
Fueling further potential upside, the NAND market could get even tighter thanks to the substantially growing appetite of artificial intelligence data centers that are just starting to consume a massive chunk of global memory and flash production capacity.
At the moment, NAND supply cannot keep up with demand.
Artificial intelligence will continue to create massive demand for data centers, which will lead to further demand for NAND, which is crucial for AI infrastructure.
Plus, consider this.
According to MIT Technology Review, there are about 3,000 data centers across the U.S. Plus, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030. Again, growing demand for data centers will mean growing demand for more NAND memory in an already tight market.
In addition, McKinsey’s analysis ‘suggests that demand for AI-ready data center capacity will rise at an average rate of 33 percent a year between 2023 and 2030 (reflecting a trend that is already underway.),’” according to analysts at McKinsey, as reported by BOMA International.
All stock market and options market trading involves the risk of the money that is at play. However, here are five huge benefits of covered call writing that you may wish to consider.
Benefit #1: If you buy a stock on the stock market, and that stock does not go up in price, you don’t make any money, unless it pays a dividend. In fact, if you hold that stock for a very long time, you are actually loosing money, because that money could have been invested in a different stock or in a savings account, money market, certificate of deposit, or mutual fund, where it would have generated interest or created growth. In addition, you have to pay a commission to buy stock, so you would actually be a few dollars in the hole.
If a stock you buy goes down in price a little, then you lose money, and there isn’t much you can do to recoup your loss, except to hold onto it and hope is goes up. You could lose some of the money you invested in addition to the cost of the commission fee to purchase the stock. The only thing you have going for you is that being a stock owner, there are no time constraints. Your loss is only on paper until you actually sell the stock; so, you can hold the stock and hope it eventually recovers.
Using the strategy of writing covered calls, you make money when your stock price goes up and when it goes “sideways.” If the stock drops a little, you might break even. If it drops a lot, the premium you received will at least reduce the price you paid for the stock. If you paid $11 for a stock and received $1 as a premium, the stock actually only cost you $10.
We still have some remnant shock from the Government Shutdown. By that I mean there are a number of Federal Bureaucracies that are behind on making certain statistics public.
But there are two agencies which have been directly affected: the US Treasury Department and the Federal Reserve. Both of which are scheduled on the Economic Calendar for this upcoming week.
The US Treasury Department will be hosting their monthly 10-Year Bond Auction Tuesday afternoon. Two days later the Treasury will be hosting their monthly 30- Year Bond Auction.
Sandwiched in between these two Bond Auctions. The Federal Reserve will be hosting the last FOMC Meeting of the year on Wednesday.
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