Best of the Week
Most Popular
1.North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - Nadeem_Walayat
2.Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - OilPrice_Com
3.Gold and Silver : The Battle for Control - Rambus_Chartology
4.Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - Nadeem_Walayat
5.Deep State Conspiracy or Chaos - James_Quinn
6.The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - Plunger
7.Gold Stocks Coiled Spring - Zeal_LLC
8.Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - John_Mauldin
9.Crude Oil Price Precious Metals Link in August - Nadia_Simmons
10.Gold and Silver Precious Metals Nearing Breakout - Jordan_Roy_Byrne
Last 7 days
Global Financial Crisis 10 Years On: Gold Rises 100% from $650 to $1,300 - 23rd Aug 17
GBP/USD Extends Losses - 23rd Aug 17
Donald Trump Terrorist in Chief, “We Aren’t Nation-Building Again, We Are Killing Terrorists” - 23rd Aug 17
How Planned Fed Rate Increases Impact The National Debt & Deficits - 23rd Aug 17
The 3 Assets to Add to Your Stocks Portfolio in This Rate Tightening Cycle - 23rd Aug 17
Half Price UK Theme Parks Entry 2017 With Cheap Chocolate Packs - 23rd Aug 17
[GIFT] Market Control System! - 23rd Aug 17
4 Reasons European Stocks Will Make a Big Comeback This Year - 22nd Aug 17
3 Lesser-Known Charts Revealing a Massive Stock Market Disconnect - 22nd Aug 17
U.S. Treasury Secretary: "I Assume Fort Knox Gold Is Still There" - 22nd Aug 17
Is the Stock Market Setting itself up for a Spectacular Crash? - 22nd Aug 17
Power Elites Launches Civil War Against Trump - 22nd Aug 17
The Stock Market No Longer Cares About Trump - 21st Aug 17
The Coming Boom Of Productivity Will Get Our Economy Back On Track - 21st Aug 17
Buffett Sees Stock Market Crash Coming? His Cash Speaks Louder Than Words - 21st Aug 17
This Could Be The Biggest Gold Discovery In History - 21st Aug 17
Stock Market Correction in Full Swing - 21st Aug 17
Seeking Confirmations – US Stock Market - 21st Aug 17
The changing demographic of online gamblers - 21st Aug 17
Gold is a coiled spring… the breakout is here, fundamentals are in place, technicals are compelling - 20th Aug 17
A Midsummer Night's Dream: Buy Gold and Silver - 20th Aug 17
Gold Mining Stocks 2017 Fundamentals - 20th Aug 17
EIA Weekly Report and Crude Oil - 19th Aug 17
4 Insights for Adjusting Your Portfolio in a Rate-hike Environment - 19th Aug 17
Gold Direction Indicator - 19th Aug 17
Historical Inevitability and Gold and Silver Ownership - 19th Aug 17
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Helium Filled Hard Drives Could Turn Western Digital Into a Big Winner

Companies / Tech Stocks Jan 16, 2013 - 11:12 AM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: With the commodities boom still in full swing you are probably aware the advantages of owning stocks related to gold, silver or other hard assets.

But when was the last time you heard someone extolling the investment virtues of helium?

And I'm not talking about helium as most folks think of it - in those giant (and comically overpriced) party balloons.


You see, a unit of disk-drive maker Western Digital Corp. (NasdaqGS: WDC) says it's discovered a way to help pump up the corporate computer networks around the world.

It'll debut later this year. And helium will be the active ingredient.

Helios ... the Greek God of High-Tech Profits
Named for the Greek god Helios, helium is created by the sun's nuclear power plant (by fusing hydrogen), and is vital for life on earth.

If you're finding it tough to make the mental jump from Greek gods and life-giving forces to life on the Nasdaq, that's understandable.

So just focus on another "life force". It is the force behind the one key challenge that businesses all around the world confront each and every day.

I'm referring to "Big Data."

A full 90% of the digital data that exists in the world today has been created in the last two years alone.
And with all the new videos, song files, photos, blog posts, business records and Websites that continue to be created, we're producing an additional 2.5 quintillion bytes of data each and every day.

Think about biotech research into gene therapies, social networks with billions of photos, and Web search indexing. Ditto for the millions of electronic transactions that major global retailers conduct per hour.

All those bytes have to sit somewhere.

And Western Digital says it's developed a new device that can really help - with a big assist from helium.

Helium-Filled Drives Are a Blockbuster Breakthrough
The Irvine, Calif.-based company's product is a new disk-drive architecture that's aimed at computer networks and data centers.

Filled with helium gas, the drives can deliver the faster speeds that become more critical each day - and can boost storage capacity by as much as 25% to 50%, Western Digital says.

The firm extolled those features as key to lowering overall ownership costs but declined to estimate how much clients will save by adopting this platform. Western Digital says it will debut the drives by the end of this year.

The helium hard-disk drives - which have already been christened as "Helium HDDs" in tech-sector shorthand - are a major milestone in the rapidly growing field of materials science. It's the first time computer engineers have put helium to this use (conventional hard drives are now filled with air).

And some experts are already predicting a blockbuster breakthrough.

Taking the whole market into account, the tech-oriented research firm IHS predicts sales of 100 million helium-filled hard drives by the end of 2016 - that's just three full years of sales.

Direct comparison of sales rates for new products in the business class computer market are hard to come by. But if the IHS forecast turns out to be correct, then the new helium-drive technology would be a blockbuster - on par with the iPhone.

Apple Inc. (Nasdaq: AAPL) released the trend-setting smart phone in June 2007. Since that time, it has remained in the vanguard of the mobile wave and continues to earn rave reviews.

According to a recent story in Popular Science, Apple has sold more than 228 million units of the pioneering smartphone worldwide in the five years since its launch.

Now then, Western Digital almost certainly won't have the whole helium-drive market to itself.

In fact, I would be surprised if archrival Seagate Technology PLC (NasdaqGS: STX) doesn't at least announce a competing design by the end of this year, or in early 2014 at the latest.

After all, the two firms remain in a disk-drive dogfight. With 48% of the hard-drive market, Seagate holds the top spot. But Western Digital is close on its heels, coming in at 45%.

IHS didn't estimate the value of the overall market; but the two firms have total combined sales of roughly $28 billion.

Technological challenges, patent protections and manufacturing costs (the drives are more-complex - and thus more costly - to produce) could augment Western Digital's head start and allow it to extend its lead, at least for a time.
Indeed, IHS believes the new technology could give Western Digital the lift it needs to take over as the industry leader: A Computerworld story that appeared just as we readied this report for you was topped by the headline: "Helium-Filled Hard Drives May Lift WD to the Top."

Right now, that's just conjecture. But here's what we can say: Western Digital's growth strategy is paying off.

That's because the helium array is the brainchild of Hitachi Global Storage Technologies, or HGST. Lured by Hitachi's high-tech portfolio, Western Digital bought the firm in March 2011 for $4.3 billion in cash and stock.

Fast-forward two years and we can see that helium-filled hard drives offer several advantages. Because helium is one-seventh the density of air, the gas lessens the drag on the spinning disk stack. That's also true of the arms that position the heads over data tracks.

The format also allows disks to be placed closer together. In this array, seven discs will now fit in the space that formerly held only five. And because helium conducts heat better than air, the new drives will run cooler and emit less noise.

Add it all up, and Western Digital seems to have a real winner on its hands...

As science fiction is transformed into science fact, the world advances at warp speed. And by uncovering the innovations that are fueling that transformation, we can discover and offer to you the cutting-edge opportunities to profit - here in the Era of Radical Change.

Source :http://moneymorning.com/2013/01/16/the-fiscal-cliff-deal-just-made-bonds-even-more-risky-in-2013/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife