Shares in the US data storage maker EMC spiked higher this week on surprisingly strong forecasts for fourth quarter sales.

The firm, which employs 1,200 people at its facility in Cork, has experienced a dismal two years due to the massive slump in demand for technology products with its shares falling from a two year high of $80 to a low of $3.67.

A spike to $7.50 this week suggests firms may be beginning to spend more on IT budgets. But investors should remain cautious with few signs that the data storage is poised for rapid growth.

Sales of lower cost product seems to have helped EMC beat its own conservative expectations. And there still seems little evidence of a significant uptick in demand within the IT industry.