Broadcom reported better-than-expected fourth-quarter results on Thursday and said annual artificial intelligence revenue more than tripled.

The chipmaker’s shares rose in extended trading, rising over 9% after Broadcom CEO Hock Tan said the company was developing custom AI chips with three separate major cloud customers.

Here’s how Broadcom performed compared to LSEG consensus estimates for the quarter ended November 3:

• Earnings per share: $1.42, adjusted versus $1.38 expected
• Revenue: $14.05 billion versus expected $14.09 billion

Broadcom expects first-quarter revenue of about $14.6 billion, just above the average analyst estimate of $14.57 billion. In the fourth quarter, revenue rose 51% year-over-year to $9.3 billion.

Net income was $4.32 billion, or 90 cents per share, in the fourth quarter, up 23% from $3.52 billion, or 83 cents per share, in the year-ago quarter.

In the semiconductor solutions group, which includes the company’s artificial intelligence chips, revenue rose 12% to $8.23 billion from $8.03 billion a year ago.

Broadcom is seeing increasing demand due to the boom in generative AI infrastructure. For the year, the company reported that AI revenue rose 220% to $12.2 billion. Part of this growth is due to Ethernet network parts used to connect thousands of AI chips.

“We see AI as an opportunity for the next three years,” Broadcom CEO Hock Tan told investors on the earnings call. “Many specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators.”

Tan said that Broadcom is currently developing AI chips with three very large customers and that he expects each of them to deploy 1 million AI chips in networked clusters by 2027. Tan said the overall market opportunity for its AI chips, which it calls XPUs, as well as parts for AI networking could be worth between $60 billion and $90 billion by 2027.

Broadcom said its infrastructure software division generated revenue of $5.82 billion in the quarter, nearly tripling from $1.96 billion a year earlier. This includes a boost from the $69 billion acquisition of VMware, which closed after the same quarter last year.

Broadcom said it will increase its quarterly dividend by 11% to 59 cents per share in fiscal 2025.