(Reuters) – Shares of Marvell Technology (MRVL) Technology rose over 13% in premarket trading on Wednesday after the chipmaker’s optimistic forecast boosted investor confidence in AI-related stocks.

The company, which makes custom AI chips for major cloud providers that help GenAI quickly process large amounts of data, forecast fourth-quarter revenue above estimates on Tuesday.

“Marvell is capitalizing on the enormous opportunity in artificial intelligence chips with a growing portfolio of custom accelerators and a dominant position in optical chips,” Morningstar analysts said in a note.

The company’s market capitalization could rise by more than $11 billion if premarket gains continue, pushing its value to a record $94.37 billion.

“We see strong demand for custom AI continuing in the fourth quarter and have secured supply chain capacity to support our customers’ growth forecasts,” CEO Matt Murphy said Tuesday.

Reuters reported on Tuesday that CEO Murphy is being considered as a potential candidate for the CEO position at struggling chipmaker Intel (INTC). However, Murphy said during a post-earnings conference call that he remains 100% focused on Marvell.

Shares of Marvell have risen nearly 60% this year, driven by AI-focused “pick-and-shovels” trading on Wall Street that has catapulted the chipmaker’s shares to new highs.

Efforts by hyperscalers like Microsoft (MSFT), Meta (META) and Alphabet (GOOG, GOOGL) to reduce reliance on AI chip leader Nvidia’s (NVDA) supply-constrained processors have come at the expense of companies like Marvell and its larger rival Broadcom (AVGO ) benefit).

The company’s data center segment, which includes custom chips, grew 98% to a record $1.10 billion in the third quarter and accounted for over 70% of total revenue in the quarter, compared to about 40% in the year-ago period .

Other chipmakers also posted gains, with Broadcom up nearly 2% premarket, while Nvidia, Intel, AMD (AMD) and Qualcomm (QCOM) gained between 0.5% and 1.5%.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)