Traditional technology companies lead the stock market profit

After years of emergence in artificial intelligence and the future of advanced technology, a traditional technology industry has returned to rip the spotlight in the stock market. The shares of “Seagate Technology”, which specializes in the production of hard drive for computer devices, are best in the S&P 500 this year after it jumped 156%. The rival “Western Digital” is third with the 137%profits. Regarding Micron Technology, the largest memory disc maker in America, was his fifth after a series of record profits that lasted 12 sessions, the returns of which were increased for 2025 to 93%. For optimistic investors, this rising wave appears in a group of companies that are often calm and established before the birth of Mark Zuckerberg Wissam Altman, how throughout the demand for artificial intelligence computer equipment is beneficial to a wide range of businesses. As for the pessimists, it is an extra sign that the stock market is in the grip of a financial bubble whose explosion is inevitable. A late stage of the economic cycle, “This kind of behavior is associated with bubble periods,” Michael Uruk, the main market strategy of the market in “Joneestrading” that worked as a circulation during the Internet bubble. He added: “If people start looking for secondary and third class investments because the leadership group has become very expensive, it is in my opinion that you are very late in the course.” Also read: “Deep Sick” brings the Chinese technology giant “Huawei” to profitability after about three years of the launch of the “chat BT” that has been obsessed with everything related to artificial intelligence, investments in the infrastructure that supports this technology is still flowing. The most important technology companies such as “Microsoft” and “alphabet” spend dozens of billions of dollars on components such as semiconductors, network equipment and electricity annually to operate data centers used to train large language models and to operate artificial intelligence applications. This spending feeds the rise of manufacturers of chips such as “Inviteia” and “TSMC”, whose market value has exceeded the trillions of dollars, and attracted the attention of investors from all over the world. Solid chips at the heart of the new revolution, “Sigits” and “Western Digital”, are one of the least attractive businesses within the current wave of enthusiasm towards artificial intelligence. The roots of the hard drive date from the fifties of the last century, when they only registered 5 MB of data and weighed more than two thousand pounds. Personal computers nowadays contain solid tablets with a capacity of two terabyte and a weight of no more than 1.5 pounds. The manufacturers of these devices develop storage solutions needed in the training of large language models, which require large amounts of data. The same goes for memory chips. Although “Micron” produces memory with a high arrangement and is an essential computer in artificial intelligence computers, it hardly elicits the enthusiasm of the average investor. “I see the signs of boredom on people’s faces when I talk about these businesses over the phone. They want to talk about cars and robots that look like dogs,” said Kim, Bokeh Capital Partners. The risk of exaggeration in artificial intelligence owns Forest, a previous software engineer who has been managing funds for two decades, as a ‘micron’ because of its competitive benefits in the memory market. But it generally believes that artificial intelligence sees an exaggerated state of intimidation, and that its realistic use, such as the Internet, will take much longer than most people expect. Also read: “Huawei” Challenges “Invidia” with a new technology for artificial intelligence chips and added: “If you buy assets directly linked to artificial intelligence or data centers, all that goes on this linear path is a warning story waiting for it to happen.” The wave of enthusiasm for artificial intelligence has contributed to raising interest in other areas stagnated in the stock market. The Gulf of Ascension in various sectors, the shares of “Fishing Tra”, which produced electricity, increased by 53% this year after rising by 258% in 2024 and 66% in 2023. As far as “Broadcom”, the Chips Maker, its market value reached 1.6 trillion dollars after its share rose by 49%, and about 100% in every 2024 and 2023. This month showed severe fluctuations, and the share has risen by more than 100% since September 2. At the same time, ‘Oracle’, the old software business known as slow databases, became the tenth largest company in the ‘S&P 500’ thanks to the strong demand for woolly computing services. And the share rose 36% after announcing its results on September 9 to the evaluation to the highest level since the Internet, which created a new discussion on the existence of a financial bubble. But the shares of “Sigitt”, “Western Digital” and “Micron” are often classified as the cheapest in the “SD -500” index because of its nature associated with the economic cycle and the limited investor base. Although the three companies are currently gaining profits, each has recorded annual losses over the past three years in accordance with the US Accounting Standards (GAAP). Low assessments at the beginning of 2025 were “Western Digital” with less than 6 times the expected profits traded, while “sigitt” and “micron” were spread about ten times. Although their judgments have since risen, the three shares still trade with a discount compared to the S&P 500 index, which is priced at 23 times the expected profits during the next twelve months. Mark Miller, an analyst at Benchmark, says that “Sigitt”, the most expensive among the three, is currently in evaluation, equivalent to 20 times the expected profits, is still very attractive because of the strength of the expected demand for its products. And raised its price target for the share last week to $ 250 – the top in “Wall Street” – which indicates a possible 13% increase compared to the closing price of $ 221 Friday. Miller wrote in a research note: “We see that the high prices and margins of the Sigid (Sigitt) tablets support the expansion of profitability compared to previous history,” Miller wrote in a research note. Future expectations and possible risks are expected to increase the turnover of “Sigit” by 16% in its financial year 2026, ending in June, a decrease in 39% growth in 2025, according to data collected by “Bloomberg”. As for ‘Western Digital’, which follows the same financial calendar, turnover is expected to rise by 16% this year after a 27% decline in 2025. “Micron” has the best growth prospects between the three, as revenue is expected to increase by 48% this year and 33% in the next year. Although “Wall Street” expresses optimism about “Sigit”, “Western Digital” and “Micron”, the shares quickly exceeded the analysts’ ability to keep up with changes in the price goals. Sigitt shares are traded with more than 20% above the average estimates, ‘Western Digital’ by more than 10%, and ‘Micron’ is just above its average. Some market experts warn that all these indicators may mean that the time has come to earn profits from these stocks. “Historically, in any periodic economic activity, the shares often reach a low evaluation and reach the bottom when recorded, so the time for purchase is when the course is reflected and the loss, and the time is for sale when the judgments seem attractive,” Jones’ sok said.