Chip storage stocks jumped in Tuesday trading.

Western Digital up 7%; Seagate, SanDisk up 3%; Silicon Motion up 2%.

Western Digital said on Tuesday its board has approved $4 billion more for share repurchases, as demand for its memory chips used in artificial intelligence servers surges.

A global shortage of memory chips has intensified competition among AI and consumer electronics companies for limited supplies, driving up prices and extending lead times as manufacturers struggle to ramp up capacity.

The data storage company had about $484 million remaining for buybacks as of Monday under its prior authorization of $2 billion in May last year.

Last week, the company forecast fiscal third-quarter revenue and profit above Wall Street expectations, betting on sales of its hard drives and flash storage for AI servers.