Shares of Pixelworks Inc. increased 54 percent just 24 hours after the company announced that Apple Inc. is one of its largest customers, according to a report by Reuters.

Pixelworks makes chips for digital display.

The iPhone company reportedly contributed over 10 percent of revenue last year, Pixelworks said in a regulatory filing on March 5.

Apple will likely use Pixelworks technology and chips in future iPads, Apple TVs and new iPhone devices in the near future.

The iPhone 6 is predicted to launch sometime during the second half of 2014.

Other companies, Samsung Electronics, HTC Corp, Huawei Technologies Co., and Qualcomm Inc. might also license its technology for their devices as well, according to Reuters.

Both NEC Corp and Hitachi Ltd and NEC contributed more than 10 percent to Pixelworks as well.

The company had a revenue of $48.1 million in 2013, causing Roth Capital Partners analyst Krishna Shankar to raise his price target for Pixelworks' stock from $6 to $10.

Pixelworks' shares increased to a seven-year high of $7.40 this week, according to Reuters. The company was trading at approximately $6.85 on the NASDAQ on March 6.

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