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 were up around 10% in extended trading.
Enterprises rushing to incorporate AI into their businesses 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.
Seagate's shares have doubled so far this year after more than tripling in 2025, as the AI-led boom in demand and a surge in memory chip prices kindled investor enthusiasm in the storage market.
Memory chip prices rose between 80% to 90% sequentially in the first quarter of this year, according to Counterpoint Research data from February.
Seagate is battling intense competition from companies such as Western Digital as they rush to ramp up production and build capacity to secure new contracts with cloud providers.
The company 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 expects quarterly adjusted earnings per share of $5, plus or minus 20 cents, while analysts expect $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)
