Broadcom’s stock rose over 24% on Friday, following announcements of substantial growth potential in its AI chip business during a quarterly earnings call.

CEO Hock Tan said Broadcom anticipates its custom AI chips, referred to as XPUs, will generate between US$60 billion and US$90 billion in revenue over the next three years from three unspecified hyperscaler customers.

The company has also acquired two additional hyperscaler clients that are developing next-generation AI XPUs, but further details were not provided.

OpenAI and Apple are said to collaborate with Broadcom on AI server chips, but both companies have not confirmed these partnerships. The collaboration with Apple may aim to decrease reliance on Nvidia’s graphics processing units (GPUs).

Following these announcements, Broadcom’s share price climbed to US$221, marking an all-time high.