Western Digital CorpWDC recently announced the launch of the world's first client solid state drives (SSDs) built with its 64-layer 3D NAND technology. The drives have been named WD Blue 3D NAND SATA SSD and SanDisk Ultra 3D SSD.
Both the products will be available in 250GB, 500GB, 1TB and 2TB capacities, at an approximate retail price of $99 as suggested by manufacturers.
While WD Blue 3D NAND SATA SSD is meant for Do-It-Yourself (DIY) enthusiasts and system builders, SanDisk Ultra 3D SSD targets computer gamers. According to Forbes, the products will be available by late summer 2017.
Following the announcement, shares increased 1.42% to close at $91.29 on May 30. We note that the stock has outperformed the S&P 500 over the past one year. While the stock returned a whopping 96.1%, the index gained 15.2% over the same time frame.
New SSDs Strengthen Product Portfolio
SSD drives are much in demand due to their low power consumption feature and non-volatile capacious flash memory. The company's growing clout in the flash memory market and launch of a string of storage devices under the mobile and cloud segment are driving top-line growth. In the last quarter, revenues surged 64.7% year over year to $4.65 billion.
Further, Western Digital's entry into the wireless devices market comes at a time when storage services related to smartphones and tablets are witnessing large-scale adoption, which is anticipated to be a tailwind.
The company has witnessed strong demand for both hard drive and NAND-based products from all categories of customers, which has been a key catalyst.
Moreover, Western Digital's acquisition of SanDisk last year boosted its revenues. We believe that it placed the company ahead of Seagate Technology STX as far as innovation is concerned.
Western Digital Corporation Revenue (TTM)
Western Digital sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report