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(Reuters) – Seagate Technology (STX) forecast fourth-quarter revenue and profit above Wall Street expectations \u200con Tuesday, betting on strong demand for \u200cits data-storage hardware as enterprises ramp up adoption of artificial \u200bintelligence.<\/p>\n
Shares of the company surged around 17% in premarket trading on Wednesday, fueling a rise in rivals’ stock. Western Digital (WDC) jumped 9%, and SanDisk (SNDK) rose 7%. Memory \u200cchipmaker Micron Technology (MU) \u2060gained about 4%.<\/p>\n
Enterprises rushing to incorporate AI to speed up processes and cut \u2060costs have also invested in storage to handle the vast amount of data required to create \u200band run \u200bthe latest models.<\/p>\n
The \u200bsurge in memory chip \u200cprices 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.<\/p>\n
Seagate forecast fourth-quarter revenue of $3.45 billion, plus \u200cor minus $100 million, compared with \u200bestimates of $3.16 billion, according to \u200bdata compiled by \u200bLSEG.<\/p>\n
The company projected quarterly adjusted earnings \u200cper share of $5, plus \u200bor minus 20 \u200bcents, while analysts were expecting $3.97.<\/p>\n
Seagate reported third-quarter revenue of $3.11 billion, beating estimates of $2.96 billion.<\/p>\n
It \u200breported earnings per \u200cshare of $3.27, compared with $1.57 per share a \u200byear earlier.<\/p>\n
(Reporting by Zaheer Kachwala in Bengaluru; \u200bEditing by Sriraj Kalluvila)<\/p>\n<\/p><\/div>\n