Investing.com -- Micron Technology (NASDAQ: MU) shares rose 4.26% on Wednesday after Seagate Technology (NASDAQ: STX) issued strong revenue and profit forecasts, signaling sustained enterprise spending on artificial intelligence equipment. The move lifted shares of data-storage companies in premarket trading.

The gains followed Seagate's results, which highlighted robust demand for memory and storage products tied to AI infrastructure deployment. Morgan Stanley described Seagate as "truly firing on all cylinders" and maintained the stock as its top pick in the sector.

DA Davidson initiated coverage on Micron on Tuesday, commenting: "We believe artificial intelligence is creating a longer-than-usual memory cycle as compute deployment and demand generation exist in a positive feedback loop, creating a structurally higher ceiling for memory pricing and demand. The market is still framing the cycle through the lens of prior downturns, which appears to underestimate the demand environment, especially relative to the rest of the semi complex. Combined with Micron's node leadership and what we see as a long duration earnings power story, we see meaningful upside to shares."

The positive sentiment around memory demand stems from continued AI infrastructure buildouts, which require significant data storage capacity. Seagate's forecast suggested that enterprise customers are maintaining elevated spending levels on storage solutions to support AI workloads.

Micron, a major producer of memory chips including DRAM and NAND flash storage, stands to benefit from the extended demand cycle driven by AI applications. The company's technology leadership in advanced manufacturing nodes positions it to capture market share as the industry expands.