Broadcom shares rose about 12% on Thursday after the company posted second fiscal quarter earnings that beat analysts’ estimates and showed it’s benefiting from the artificial intelligence boom.

Broadcom reported earnings per share of $10.96 ahead of LSEG consensus estimates of $10.84 per share. It reported revenue of $12.49 billion, beating the expected $12.03 billion.

The chipmaker expects about $51 billion in sales during its fiscal 2024 year, an increase from the company’s previous forecast, and slightly higher than consensus expectations of $50.42 billion.

Analysts see Broadcom as a beneficiary of increasing investments in AI.

“Alongside Nvidia, we view Broadcom as a critical piece to the ongoing AI infrastructure build-out, and reiterate our Buy rating on the stock with 8% potential upside (vs. AVGO’s after-hour price of $1,713) to our updated 12-month price target of $1,850 (from $1,550 prior),” Goldman Sachs analysts said in a note to investors on Thursday.

Bank of America analysts reiterated a buy rating and said they consider Broadcom a top AI pick because the company is positioned to grow in custom AI chips, Ethernet networking and can upsell VMware to enterprise customers deploying AI.

“We model FY24E sales at $51.5bn, above guidance on continued upside to AI, with FY25/FY26E sales growth raised to 16%/10% YoY from 14%/8% prior,” the Bank of America analysts said.

Broadcom also announced a 10-for-1 stock split on Wednesday. Shares are set to begin trading on a split-adjusted basis on July 15.

CNBC’s Michael Bloom contributed to this report.