Manufacturers of memory chips and computer hard drives traded higher Tuesday after Samsung (SSNLF) and Nidec (NJDCY) gave bullish market outlooks for the new year, which several Wall Street analysts called "very positive" for Micron (MU), Western Digital (WDC) and Seagate (STX).

SAMSUNG WEIGHS IN ON MEMORY MARKET: In its fourth quarter report late Monday, Samsung stated that, within NAND memory, "demand for mobile products such as high-density SSD remained solid while industry supply was restricted." For DRAM chips, the company said that "supply and demand conditions remained favorable." Looking ahead to 2017, the Korean conglomerate remarked that "although the industry's 3D NAND supply will be a key variable, supply and demand is expected to remain favorable throughout the year. For DRAM, demand will remain solid throughout the year led by higher densities in data centers and smartphones." The company cautioned that, for Q1, "weak seasonality will impact demand although overall conditions will remain solid due to limited industry supply."

NIDEC RAISES HARD DRIVE OUTLOOK: Japan-based Nidec, a market leader in the the type of small motors used in hard drives, revised its market outlook in its quarterly report Tuesday. For the company's fiscal Q3 ended December 31, Nidec raised the estimated HDD market view to 112M units from 106M. For its fiscal Q4, or calendar Q1, Nidec boosted its total HDD market forecast to 100M from 93M.

MIZUHO SAYS SAMSUNG REMARKS POSITIVE FOR MEMORY FIRMS: Research firm Mizuho argued Tuesday that Samsung's remarks are "very positive" for Micron, Western Digital, and even Seagate. The Korean conglomerate stated during its conference call that it expects only high teens DRAM bit growth in 2017 alongside NAND bit growth of roughly 30%, which Mizuho says would be one of the lowest NAND growth rates in recent years. The chip style could potentially see shortages in 2017, the analyst says, adding that Samsung's commentary is "very bullish and positive" for Micron and Western, particularly in the year's second half.

JEFFERIES SAYS NIDEC NEWS 'VERY GOOD' FOR STORAGE: Weighing in on the Nidec commentary, Jefferies highlighted that the company's "very strong" calendar Q4 estimate was pinned on PC demand and NAND shortage. Expectations for a 100M total market in calendar Q1 are meaningfully ahead of Jefferies' own estimate of 87M, and Nidec's call on enterprise hard drives also came in above the firm's estimate, which it calls "very good news" for Seagate and Western Digital.

EARNINGS ON DECK: Seagate is scheduled to report fiscal second quarter earnings after the market close on Tuesday, January 24, while Western Digital is set to report Q2 earnings after the market close on Wednesday, January 25.

PRICE ACTION: Shares of Seagate and Western Digital are up a respective 4% and 5% in afternoon trading, while Micron is up 4.8% to $22.93.