By Zaheer Kachwala<\/p>\n
April 28 (Reuters) – Shares of storage companies jumped in extended trading on Tuesday, after strong revenue and profit forecasts from Seagate Technology (STX<\/a>) signaled that \u200cspending by enterprises on artificial intelligence<\/a> equipment will remain strong.<\/p>\n Seagate’s strong forecast and \u200cthe late-day surge in storage stocks underscore investors’ confidence that enterprise AI spending will sustain demand for data-storage \u200bequipment despite broader market concerns about the pace of AI adoption.<\/p>\n Companies have funneled increasing amounts of money into data drives, hard disks and other digital storage as they rushed to upgrade their artificial intelligence models and infrastructure.<\/p>\n Shares of Seagate soared 16% in extended trading, while Western Digital (WDC<\/a>) \u200cjumped 10%, Micron Technology (MU<\/a>) climbed \u20603% and SanDisk (SNDK<\/a>) rose 4%, adding a combined $60 billion to the four storage technology companies’ market value.<\/p>\n “AI is amplifying demand across existing applications such \u2060as video, where large cloud providers are integrating AI in the platforms to boost user engagement and revenue opportunities, driving new video creation and the need to store it,” said Seagate CEO \u200bDave \u200bMosley on a post-earnings conference call.<\/p>\n Seagate forecast fourth-quarter \u200brevenue of $3.45 billion, plus or minus $100 \u200cmillion, beating estimates of $3.16 billion, according to data compiled by LSEG.<\/p>\n Executives at Seagate and rival Western Digital have previously said their capacity has been fully allocated and sold out through calendar 2026.<\/p>\n