Broadcom secures a five-year extension to supply custom ASIC chips to Apple, boosting premarket shares by 4%.
Broadcom shares jumped 4% in premarket trading after the company announced a multiyear agreement to supply Apple with custom ASIC chips through 2031. The deal extends an existing collaboration between the two firms, reinforcing Broadcom’s role as a key semiconductor supplier for Apple’s consumer devices.
Prior to the announcement, Broadcom had been a long-standing partner for Apple, providing various components for its products. The extension aligns with Apple’s strategy to deepen relationships with select suppliers for specialized chip development. No financial terms of the deal were disclosed.
The premarket gain reflects investor confidence in Broadcom’s continued revenue stream from Apple, one of the largest tech companies globally.