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Investing.com -- Shares of computer hardware and storage companies rallied on Thursday, with Sandisk leading the charge with a 13% gain as analysts see potential benefits from new export regulations.
Western Digital stock rose 5%, while Seagate Technology, Micron, and Lam Research each added approximately 3%. The sector-wide gains come as market participants assess the implications of recently implemented export rules affecting memory chip production in China.
Lynx Equity Strategies analyst KC Rajkumar identified Sandisk as a key beneficiary, noting that "The potential for disruption to fab operations at China-based NAND fabs of Samsung and Hynix is likely to place disruptive upward pressure on flash pricing." According to Rajkumar, this development positions Sandisk and Micron as "clear winners" in the sector.
The analyst highlighted Sandisk’s focused business model as particularly advantageous in the current regulatory environment, stating that "Being a purer play on flash storage, SNDK is likely to see the most positive impact." Lynx Equity also identified Lam Research as another company poised for potential gains from the export rule changes.
The export restrictions are expected to constrain production at Chinese memory manufacturing facilities operated by major players Samsung and SK Hynix, potentially creating supply constraints that could drive prices higher for companies with production facilities outside China.
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