Broadcom Inc. shares climbed about 4% in US pre-market trading on Monday after the chipmaker extended its long-term custom ASIC silicon products supply agreement with Apple Inc., reinforcing a key partnership through 2031.
Real-time data showed Broadcom shares were up 4.10% at $375.24 in pre-market trading, compared with their previous close of $360.45.
The renewed agreement expands Broadcom's long-standing technology collaboration with Apple and gives the company greater visibility into demand for its custom silicon business over the rest of the decade.
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According to Broadcom's filing with the US Securities and Exchange Commission, the companies have entered into new multi-year agreements covering custom ASIC silicon products for future Apple devices.
"Broadcom Inc. ("Broadcom") and Apple Inc. ("Apple") have agreed to expand their long-standing technology collaboration through 2031 by entering into new multi-year long-term agreements for Broadcom to develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products."
The agreement secures Broadcom's role as a key supplier of custom chips across multiple generations of Apple products, strengthening a relationship that has been central to Apple's hardware ecosystem.
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Beyond Apple, Broadcom has been expanding its artificial intelligence business by developing custom AI chips for large technology companies, including Alphabet and Meta Platforms.
For investors, the extension offers long-term revenue visibility from one of Broadcom's largest customers while underscoring its growing importance in Apple's custom silicon strategy.
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