OpenAI is in discussions to acquire up to five exabytes of data storage, equivalent to about 5 million terabytes, needed to support the training of its AI models, including ChatGPT. In parallel, companies like Microsoft Corp., Alphabet Inc., and Amazon.com Inc. are reportedly consuming 70% of all memory chips as demand for AI capabilities surges.
Over the past year, shares of Western Digital Corp. and Micron Technology Inc. have seen substantial increases, with Western Digital rising 800% and Micron more than 700%. However, investors have recently experienced profit-taking, leading to declines of 20% and 26% from record highs, respectively, raising concerns about the sustainability of the AI market boom.
Research from TradeSmith indicates that understanding seasonal stock patterns could provide investors with better insights on when to trade. For instance, stocks like Western Digital have historically shown an upward trajectory 86.7% of the time during its green days from July 1 to July 22. Conversely, Micron’s favorable period doesn’t begin until August 20, suggesting that market timing may be crucial in navigating current AI stock dynamics.
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