Investing.com -- Shares of data storage companies jumped in premarket trading on Wednesday, a day after Seagate Technology issued a stronger-than-expected revenue and profit forecast, signaling that enterprise spending on artificial intelligence infrastructure remains robust.

Western Digital rose 9.7%, SanDisk jumped 6%, and Micron added nearly 3% in premarket trading by 05:53 ET, as investors took Seagate’s upbeat outlook as a broader indicator of sustained demand for storage hardware.

Seagate projected fourth-quarter revenue of $3.45 billion, plus or minus $100 million, well above the $3.16 billion analyst consensus compiled by LSEG. The company also forecast adjusted earnings per share of $5.00, plus or minus 20 cents, compared with analyst expectations of $3.97.

The forecast reflects growing appetite among enterprises for data storage equipment as companies accelerate investment in artificial intelligence models and the infrastructure needed to support them, driving demand for hard drives and other digital storage products.

“Exponential token growth and emerging AI applications are fueling accelerating data growth and growing data retention needs,” Morgan Stanley analysts said.

Rising demand for storage is coinciding with a surge in memory prices, as power-intensive data centers consume growing volumes of high-bandwidth memory to store and process vast amounts of information.

The tightening supply of memory chips has left companies racing to secure alternative hardware solutions to support their AI ambitions, benefiting makers of physical hard drives such as Seagate.