Apple and Broadcom renewed their chip-supply agreement, keeping Broadcom as a custom-silicon supplier to Apple through 2031. Apple shares jumped 4.84% while Broadcom slipped 2.41%, and the deal lands as AI-driven demand pushes memory and storage chip prices higher.
Apple and Broadcom will extend their chip-supply agreement, under which Broadcom develops and supplies the iPhone maker with a range of custom silicon products used across Apple's portfolio. Terms of the extension weren't disclosed.
The two companies had previously extended their multiyear, multibillion-dollar deal in 2023. With this latest extension, Broadcom will supply Apple with chips through 2031.
Apple stock rose 4.84% to 308.63 USD, while Broadcom fell 2.41% to 360.45 USD. Over five days, Apple added 8.76% and Broadcom lost 1.25%.
The deal comes as the price of memory and storage chips has surged in recent months, driven by rapidly increasing demand from artificial intelligence hyperscalers. Those higher prices led Apple to raise the price of its Macs and iPads last month.
Source: MarketScreener (snippet-based)
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