Go Western Digital, Young Man

We have talked about the resurgence of the technology sector several times over the last couple of months. On Wednesday, we saw another indication that things are turning around in this group and that demand for technology products may be on the upswing.

Seagate Technologies (STX Quote), one of the largest disk-drive manufacturers, upped its fiscal first-quarter earnings projections by 50%, as hard-drive prices increased amid strong PC demand.

Seagate's announcement suggests that the entire disk-drive sector is seeing better pricing, as well as strong unit demand, which also implies that technology spending is up across the board. Disk drives are one of the basic commodities of the technology sector, and the idea that consumption is exceeding supply bodes well for hardware manufactures.

The improvement in disk-drive demand appears to be coming from an increase in basic technology, such as personal computers, and not from new consumer product introductions. It seems that "old-fashioned" technology products are selling well. ...