(Bloomberg) — Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, surged to a $1 trillion market valuation for the first time after predicting a boom in demand for its artificial intelligence chips.

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Sales of AI products will gain 65% in the fiscal first quarter, far faster than its 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 that it designs for data center operators would reach as high as $90 billion by fiscal 2027.

Like Nvidia Corp., Broadcom is positioning itself to be a major beneficiary of the AI spending frenzy. And Chief Executive Officer Hock Tan said his company had won two major new hyperscaler customers — the biggest operators of data centers.

The stock rose 24% to $224.80 in New York on Friday, its biggest one-day rally since August 2009 — the month when precursor company Avago Technologies Ltd. held its initial public offering. That business merged with Broadcom Corp. in 2016 to form the current company.

Investors have piled into Broadcom’s stock this year, lured by AI optimism. The Palo Alto, California-based company had predicted that it would get more than $10 billion in annual revenue from that market, outpacing other parts of its business. Ultimately, the number reached $12.2 billion in the last fiscal year.

AI revenue grew 220% during the year, fueled by demand for processors and networking components, Tan said. Demand for non-AI chips, meanwhile, will be down in the first quarter. Total sales will be $14.6 billion in the period, which runs through January, in line with estimates.

Tan has assembled one of the most valuable companies in the chip industry through a string of acquisitions. He also has built a software unit that’s approaching the scale of its semiconductor operations. That reach makes the company’s forecasts a bellwether for demand over a broad swath of the technology industry.

Profit was $1.42 a share in the fourth quarter, excluding some items, the company said. Revenue rose to nearly $14.1 billion in the period, which ended Nov. 3. Analysts had estimated $1.39 a share in earnings and revenue of $14.1 billion on average, 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 gear. Its push into software, meanwhile, includes products for mainframe computers, cybersecurity and data center optimization.