Zoom Communications (ZM) delivered fiscal Q3 results with solid beats on the top and bottom lines as the company is seeing elevated demand for its artificial intelligence products, Wedbush Securities said in a note Tuesday.

The company's Q3 revenue at $1.23 billion was above both market expectations and Zoom's own guidance range as it is seeing "continued strength across its entire portfolio especially with its AI-first platform," the investment firm said.

Zoom's "enterprise segment remains strong" as the company's AI portfolio is opening up "new revenue streams while driving deeper customer value through customization and automation," the note said.

Also, after Zoom launched its AI Companion 3.0, it is still seeing monthly active users for the product increasing 4 times year on year, which was the same as last quarter, Wedbush said. The features "provides new and improved AI use cases built into the platform with enterprises now expanding their AI use cases," the note said.

Wedbush reiterated Zoom's outperform rating and $95 price target.

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