A subtle change in the technological climate is clearing the skies over a couple of high-tech firms and their stocks, according to David Lutz. The Stifel, Nicolaus Capital Markets managing director told CNBC how it works.
"Commodity memory prices, specifically D-Ram, which is used in PCs, and NanFlash, which is used in consumer electronics like iPods, cell phones and digital cameras, has been under severe pressure during the last year, due to oversupply and seasonably soft demand," he said.
That's changing, and as it has changed, it has created a pendulum effect, with demand moving back and forth between the two.
At this point, he thinks the stock to own is SanDisk, a pure play in the NanFlash market, although it has already enjoyed substantial gains.
Also on his list are Micron Technologies and Qimonda