Shares of Broadcom stock are up 21%, and the company has surpassed a trillion dollar market cap

shares of Broadcom It 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 on record if the move holds through the close.

The move comes after the company announced fourth quarter results that beat Wall Street’s earnings expectations and showed strong growth in artificial intelligence revenue.

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

The company said AI revenue rose 220% year over year to $12.2 billion. Shares popped in after-hours trading on Thursday when Broadcom CEO Hock Tan said the company was developing custom AI chips with major cloud clients.

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 same quarter a year earlier.

Bernstein analysts wrote in a note on Friday that Tan might look good in a leather jacket, a nod to Nvidia CEO Jensen Huang’s signature style. They said there were a lot of nerves ahead of Thursday’s results, but Broadcom’s fourth-quarter earnings were “decent” and management pushed for AI’s near- and long-term outlook.

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

“Overall, it looks like the AI ​​story is really coming into its own,” the analysts wrote.

Analysts at Bank of America reiterated their buy rating on the stock, in part because of its “increasing AI opportunity.” They said Broadcom currently dominates the market for custom chips for internal workloads, but warned that “fierce competition from NVDA’s commercial silicon and its stronghold on enterprise customers” poses some risk.

Analysts at Morgan Stanley said Broadcom’s comments on AI will likely boost the company’s long-term enthusiasm, which they expect to continue to build. They said that Broadcom remains one of the most attractive ways to play AI in the next two to three years.

“Overall, the quarter itself will provide some relief from lower near-term expectations, and the lengthy commentary on AI will fuel longer-term enthusiasm for custom AI chips — enthusiasm that was already at a fever pitch,” the analysts wrote in a note. Friday’s note.

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