Data-storage stocks jump as Seagate’s upbeat forecast fuels confidence in AI spending

Shares of data-storage companies jumped on Wednesday, a day after strong revenue and profit forecasts from Seagate Technology signaled that spending by enterprises on artificial intelligence equipment will remain strong.

Seagate’s strong forecast and the surge in storage stocks underscore investor confidence that enterprise AI spending will sustain demand for data-storage equipment despite broader market concerns about the pace of AI adoption.

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.