Seagate Technology PLC's stock surged 5.13% in pre-market trading on Monday, extending gains after a recent blockbuster earnings report.

The data-storage company is benefiting from robust artificial intelligence-driven demand for high-capacity hard-disk drives at data centers. AI has increased the value of companies' data, fueling need for storage, while Seagate and its rivals have kept supplies tight, leading to wider margins.

Industry consolidation has lessened competitive pressures, and the positive outlook is echoed by Western Digital's CFO, who noted "all boats are rising" in the data and memory sector. This environment supports continued growth for Seagate.