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Shares of Dolby Laboratories popped on Wednesday after Apple revealed several new products featuring Dolby technology.
New Apple products, including the iPhone X and the new Apple TV 4K, will support video technology called Dolby Vision, Apple said on Tuesday at a big launch event in Cupertino, California. Apple said Dolby's technology will help the set-top box output the "highest resolution possible" and that it would make mobile content look "even more amazing." Dolby demonstrated the effect on its website.
Investors lapped up Apple's praise: Shares of Dolby's stock were up more than 9.5 percent on Wednesday, after rising 4.74 percent in Tuesday after-hours trading. More than 3.8 million Class A shares of Dolby changed hands on Wednesday, way above the 30-day average volume of about 439,000.
Analysts at Piper Jaffray called Apple's shout-outs "significant wins" for Dolby.
"The stock reacted favorably on the news and rightfully so," JPMorgan's Paul Coster wrote in a research note. "Apple's adoption of Vision on mobile may entice other [manufacturers] to follow suit."
— CNBC's Gina Francolla and John Melloy contributed to this report