April 28 (Reuters) – Seagate Technology forecast fourth-quarter revenue and profit above Wall Street expectations on Tuesday, betting on strong demand for its data-storage hardware as enterprises ramp up adoption of artificial intelligence.
Shares of the company surged around 16% in extended trading, fueling a rise in rivals’ stock. Western Digital jumped 11% and SanDisk rose 4%. Memory chipmaker Micron Technology gained about 3.5%.
Enterprises rushing to incorporate AI to speed up processes and cut costs have also invested in storage to handle the vast amount of data required to create and run the latest models.
The surge in memory chip prices has also boosted investor enthusiasm in the storage market, with Seagate’s shares doubling in value so far this year after more than tripling in 2025.
Seagate forecast fourth-quarter revenue of $3.45 billion, plus or minus $100 million, compared with estimates of $3.16 billion, according to data compiled by LSEG.
The company projected quarterly adjusted earnings per share of $5, plus or minus 20 cents, while analysts were expecting $3.97.
Seagate reported third-quarter revenue of $3.11 billion, beating estimates of $2.96 billion.
It reported earnings per share of $3.27, compared with $1.57 per share a year earlier.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila)
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