Seagate Technology reported higher fourth-quarter profit on the back of an AI-driven surge in data storage demand.

The mass-capacity data storage company reported net income of $1.29 billion, or $5.58 a share, up from $488 million, or $2.24 a share the year prior.

Adjusted earnings were $5.71 a share. Analysts polled by FactSet expected $5.10 a share.

Revenue rose to $3.63 billion from $2.44 billion. Wall Street expected $3.5 billion.

The company guided for first-quarter revenue of $4.1 billion, plus or minus $100 million and adjusted earnings of $7.30 a share, plus or minus 20 cents a share.

Hard-drive makers like Seagate have seen soaring revenue and profit as the AI boom has fueled supply shortages. Capacity has remained constrained, leading to higher prices for customers across a range of industries and boosting the bottom line of producers.

But Seagate's stock has fallen sharply in recent days due to investor fears of increased competition from China as well as concerns about the sustainability of tech companies' AI infrastructure spending.

"As AI accelerates data generation and its value, we see durable long-term demand for mass capacity storage," said Chief Executive Dave Mosley.