Broadcom and Apple extend chip deal through 2031

Broadcom and Apple extended their chip partnership through 2031, ensuring long-term custom silicon supply for Apple devices. The deal boosts Broadcom shares but faces risks if Apple shifts to in-house chips.

Broadcom and Apple have extended their custom chip partnership through 2031, securing a long-term supply agreement for custom ASIC silicon components across multiple generations of Apple devices. Confirmed via an SEC filing, this deal strengthens a supplier relationship that has lasted over 15 years, providing Broadcom with predictable revenue streams tied to Apple’s hardware roadmap. Following the announcement, Broadcom’s stock rose by 4–5%. The partnership reduces Broadcom’s client concentration risk and supports Apple’s sustained product update cycles. However, there is a risk that Apple could internalize more chip development or shift production to other suppliers, potentially impacting Broadcom’s share. The news underscores the importance of a reliable chip supply for Apple, especially as AI-driven demand grows, though this demand is limited by manufacturing capacity. Broadcom continues to diversify into AI custom chips, collaborating with partners like Alphabet and Meta.