Broadcom NASDAQ:AVGO shares climbed more than 3% on Wednesday after investor sentiment improved following the extension of the company's long-term chip supply agreement with Apple NASDAQ:AAPL.
The updated agreement runs through 2031 and includes Apple's $1.5 billion investment in Broadcom's Fort Collins manufacturing facility as part of a broader arrangement expected to exceed $30 billion. The expanded partnership is expected to provide Broadcom with greater long-term revenue visibility while supporting U.S. chip production.
Separately, Broadcom renewed its partnership with Nationwide Building Society to expand hybrid cloud capabilities. The company also disclosed insider stock sales by its chief legal and corporate affairs officer in late June, a development that may draw investor attention even as the broader business outlook remains supported by enterprise demand.
Broadcom traded around $386 during the session, up more than 4%. The stock remained above several widely followed moving averages, reflecting continued upward momentum. Market participants are watching whether Broadcom can extend gains after the Apple agreement, while monitoring broader semiconductor demand and company execution in the coming quarters.