(Bloomberg) — Broadcom Inc., a chip supplier to Apple Inc. and other major technology companies, rose to a market valuation of $1 trillion for the first time after the company predicted a boom in demand for its artificial intelligence chips.

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Sales of AI products will rise 65% in the fiscal first quarter, far faster than overall semiconductor growth of about 10%, the company said during a post-earnings conference call. The chipmaker also predicted that the addressable market for AI components it develops for data center operators would reach as much as $90 billion by fiscal 2027.

Like Nvidia Corp. Broadcom is positioning itself as the primary beneficiary of the AI ​​buying spree. And Chief Executive Hock Tan said his company had secured two major new hyperscaler customers – the largest data center operators.

After the stock market opened in New York on Friday, the shares rose by 21% to $218.29, the biggest share price rally since March 2020.

Investors have piled into Broadcom stock this year, lured by AI optimism. The Palo Alto, Calif.-based company had predicted it would generate more than $10 billion in annual sales in that market, outperforming other divisions. Ultimately, the number reached $12.2 billion in the last fiscal year.

AI sales rose 220% during the year, driven by demand for processors and networking components, Tan said. Meanwhile, demand for non-AI chips will decline in the first quarter. Total sales are estimated to be $14.6 billion in the period through January.

Tan has built one of the chip industry’s most valuable companies through a series of acquisitions. He has also built a software unit that is approaching the scale of his semiconductor business. This reach makes the company’s forecasts an indicator of demand across a broad spectrum of the technology industry.

Fourth-quarter profit was $1.42 per share, excluding certain items, the company said. Sales rose to nearly $14.1 billion in the period ending Nov. 3. Analysts had expected earnings of $1.39 a share on average and revenue of $14.1 billion, according to data compiled by Bloomberg.

Data center providers rely on Broadcom’s custom chip design and networking semiconductors to build their AI systems. The company also sells components for cars, smartphones and internet access devices. The push into software now includes products for mainframe computers, cybersecurity and data center optimization.

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