Broadcom NASDAQ:AVGO shares climbed more than 5% on Monday morning after Broadcom secured a new multiyear agreement with Apple NASDAQ:AAPL to provide custom application-specific integrated circuit chips.
Broadcom said the new arrangement extends its long-running relationship with Apple through 2031 and covers the development and supply of custom silicon products for future generations of Apple devices. Broadcom did not disclose financial terms or shipment details in the filing.
Broadcom has maintained a sizable role within Apple's supply chain for years, providing connectivity and networking technologies used across products including iPhones and other devices. Analysts estimate Apple contributes roughly 20% of Broadcom's annual revenue, making the relationship an important part of Broadcom's business mix.
Broadcom has also been expanding its artificial intelligence exposure in recent months. Earlier this year, Broadcom expanded its work with Meta (META) to support AI infrastructure and accelerator chips through 2029. Broadcom also recently collaborated with OpenAI on a chip designed for large language model inference workloads.