Everpure stock rose Thursday after the data-storage solutions company said revenue growth would accelerate due to hyperscaler business opportunities and booming demand for artificial intelligence.

Shares of Everpure, formerly known as Pure Storage, advanced 6.4% to $116.64 in premarket trading on Thursday after ending Wednesday down 1.1%. The stock, which recently joined the S&P 500, has risen 18% in September and has gained 64% this year as of the closing bell on Wednesday.

Investors were piling into the stock after the company, at its analyst presentation on Wednesday, backed its fiscal 2027 revenue growth between 37% and 38% with adjusted operating income increasing 48% to 51%. But Wall Street was particularly impressed with Everpure's preliminary fiscal 2028 outlook.

"Everpure is at an inflection point as we expand our horizons to managing data in the enterprise and solutions for hyperscalers," CEO Charlie Giancarlo said. "A decade of committed investment in an integrated, extensible architecture has created a structurally higher growth baseline in our core business."

Everpure forecast revenue growing between 39% and 45% to $7 billion to $7.3 billion in fiscal 2028 with adjusted operating income totaling $1.7 billion to $1.9 billion. That would represent 80% to 100% growth from fiscal 2027.

Wall Street expects fiscal 2028 revenue of $6.5 billion and operating income of $1.46 billion, according to FactSet.

"Everpure continues to outdo itself," Guggenheim analyst Howard Ma said in a research note.

"Everpure is starting to transform how applications and workflows access and re-use data and leverage shared context for AI use cases," Ma added. "It's an evolution whereby apps become stateless workflows and Everpure subsumes disjointed data integration functions."

Key to the company's revenue forecast is growing demand for its DirectFlash module and Purity operating system offerings. This is a proprietary system that allows for direct communication and management of flash memory chips.

The booming demand for memory chips have led to significant gains for shares of Micron Technology and Sandisk. Wall Street sees memory chip demand remaining elevated in coming years.

Everpure management said its "core AI business opportunity" is growing at an accelerated pace. The company projected that its all-flash storage total addressable market over the next four years could increase to $207 billion as demand grows for AI and hyperscaler solutions. That market is currently estimated to be around $50 billion.

"AI and data proliferations have dramatically expanded our addressable market, ushering the age of data primacy driven by two structural tailwinds, exponential data growth and massive AI related data infrastructure deployments," Chief Financial Officer Tarek Robbiati said Wednesday.

Morgan Stanley analyst Erik Woodring raised his price target on Everpure by 15% to $137 with a bull case price target of $225. That bull case price target represented 105% upside from the closing price of $109.65 on Wednesday.

Woodring said in the research note that coming into the event investors were questioning the sustainability of Everpure's recent growth trajectory following fiscal third-quarter guidance that implied a deceleration in the core business with little operating leverage.

"We think those concerns should quickly reverse," Woodring said.