FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Feb 3 (Reuters) - 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.
Its shares rose about 5% in premarket trading, adding to a 57% jump this year. The shares had more than tripled in value last year.
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.
(Reporting by Akash Sriram in Bengaluru; Editing by Sahal Muhammed)
