Shares of Broadcom rose more than 21% on Friday morning, pushing the company’s market cap above $1 trillion for the first time. It will be Broadcom’s best trading day ever if the move continues until the closing bell.

The move comes after the company reported fourth-quarter results that beat Wall Street’s earnings expectations and showed strong sales growth in its artificial intelligence business.

Broadcom reported fourth-quarter revenue of $14.05 billion, up 51% year-over-year but below the $14.09 billion expected by analysts, according to LSEG. In Broadcom’s semiconductor solutions group, which includes its AI chips, revenue rose 12% to $8.23 billion from $8.03 billion a year ago.

The company said AI revenue rose 220% for the year to $12.2 billion. The stock rose sharply in after-hours trading on Thursday as Broadcom CEO Hock Tan said the company was developing custom AI chips with major cloud customers.

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

Bernstein analysts wrote in a note Friday that Tan could look good in a leather jacket, a nod to that Nvidia CEO Jensen Huang’s signature style. They said there was a lot of nervousness ahead of Thursday’s results, but Broadcom’s fourth-quarter profit was “decent” and they were encouraged by management’s near- and longer-term vision for AI.

Analysts raised their price target on the stock from $195 to $250.

“Overall, the AI ​​story really seems to be coming into its own,” the analysts wrote.

Analysts at Bank of America reiterated their “buy” rating on the stock, in part due to its “strongly growing AI opportunity.” They said Broadcom currently dominates the market for custom chips for internal workloads, but warned that there is some risk from “tough competition from NVDA’s stronghold in merchant silicon and enterprise customers.”

Morgan Stanley analysts said Broadcom’s comments on AI will likely reinforce long-term enthusiasm for the company, which they expect will continue to grow. They said Broadcom remains “one of the most compelling ways to play AI semis” over the next two to three years.

“Overall, the quarter itself will provide relief from low near-term expectations, and the longer-term commentary on AI will fuel enthusiasm about the longer-term prospects for custom AI chips – enthusiasm that was already in full swing,” the analysts wrote in a Friday note .

— CNBC’s Michael Bloom and Kif Leswing contributed to this report.