Shares of Broadcom (NASDAQ: AVGO) charged higher Thursday morning, climbing as much as 3.9%.
ET, the stock was still up 3%. The semiconductor specialist continued a rally that began yesterday, sparked by news regarding its deals with some of the world’s biggest companies. A $30 billion commitment Word broke yesterday that Apple (NASDAQ: AAPL) inked an expansive new multiyear deal with Broadcom.
The iPhone maker announced that it plans to spend more than $30 billion on Broadcom chips over the next five years. In a press release, the pair plan to “design and produce custom silicon components and cutting-edge wireless connectivity technologies for a wide range of Apple products.” The deal will include a $1.5 billion expansion and modernization of Broadcom’s manufacturing facility in Fort Collins, Colorado. The $30 billion commitment will underpin the production of more than 15 billion semiconductors in the U.S.