Broadcom Inc. (AVGO) just extended its chip supply agreement with Apple through 2031, according to a regulatory filing reported by Bloomberg.
This partnership is not a new development. Apple and Broadcom have a long-standing supply relationship and previously made headlines back in 2023 when Apple announced a multi-billion-dollar deal to secure U.S.-manufactured 5G components.
This latest agreement simply extends and broadens that established collaboration.
The renewal does not introduce a new product line. It locks in technology Broadcom has already been supplying for years, and that detail changes how the deal should be read.
Apple has spent years trying to reduce its dependence on outside chip suppliers. It just extended one of its most important supplier relationships by five years instead.
The agreement extends existing chip technology, not a new product line
Broadcom will develop custom ASIC chips, short for Application Specific Integrated Circuit, for use across multiple generations of Apple products, according to the filing cited by Bloomberg.
No financial terms were disclosed. The agreement builds on a multiyear, multibillion dollar deal the two companies struck in 2023, extending that relationship four years further into the future, according to a Seeking Alpha report.
Related: Broadcom gets major OpenAI boost in AI chip race
At the time of the 2023 extension, Apple CEO Tim Cook framed the relationship as part of a broader commitment to U.S. based technology investment, according to the same report.
That framing has not changed. What has changed is how much weight the relationship now carries for Broadcom’s business.
Broadcom stock rose because of Apple deal
Broadcom shares jumped as much as 5% in premarket trading Monday, July 6, following the announcement, according to TradingKey.
The stock is up more than 30% over the past 12 months, with its stock price reaching $360.45, up from $274.18.
Broadcom trades on the Nasdaq under the ticker AVGO, and it matters to investors because a large share of its revenue depends on a single customer.
Apple accounts for roughly 20% of Broadcom’s total annual revenue, according to Reuters. A five-year commitment from a customer that size removes uncertainty that had been sitting over the stock. That is why the market moved before the full details were even disclosed.
Apple still can’t replace Broadcom’s wireless chip technology
Apple has brought modem development in house, with its C1 chip debuting in the iPhone 16E. Yet it still has not been able to move away from Broadcom for wireless and radio frequency components, according to Reuters.
Insourcing a modem is not the same as insourcing RF engineering, and that gap is exactly where Broadcom still gets paid.
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The partnership also extends into Apple’s AI buildout. Broadcom technology is built into Apple’s in development AI server chips, internally codenamed Baltra, targeted for rollout as early as next year to support Apple Intelligence’s cloud infrastructure, Bloomberg noted. That means this deal is no longer purely a wireless chip story.
Broadcom’s semiconductor solutions segment shows the same shift playing out in its financials. Growth in that segment accelerated from 52% in the first quarter to 79%, while AI specific revenue growth accelerated from 106% to 143%, according to a Seeking Alpha analysis. Apple’s extension slots into that same growth curve.
Broadcom’s other AI partnerships add further context. The company extended its chip partnership with Meta in April 2026, agreeing to supply technology for Meta’s Training and Inference Accelerator chips through 2029.
Broadcom also worked with OpenAI to showcase Jalapeño, a chip built specifically to run inference for large language models, according to the same report.
Rising memory chip prices, up as much as 98% in early 2026 on AI data-center demand, pushed Apple to raise Mac and iPad prices in June, according to a report from TheStreet.
The deal reflects a bigger supply-chain shift
This deal is one data point in a larger shift where chip supply, not chip demand, has become the binding constraint on tech growth.
Companies across industries are locking in multi-year commitments years in advance. Losing chip supplier relationship now carries more risk than paying a premium to keep it.
Broadcom itself shows this pattern extending well beyond Apple. In April 2026, Broadcom signed a long-term agreement to develop custom Tensor Processing Units for Google, along with a separate deal to supply networking components for Google’s next-generation AI server racks through 2031, according to a Broadcom filing with the SEC.
That same filing disclosed an expanded compute agreement involving Google, Broadcom, and Anthropic, under which Anthropic will access several gigawatts of TPU based AI capacity beginning in 2027.
The pattern is not limited to AI infrastructure. Micron struck a long-term chip supply deal with General Motors last week, as automakers build more computing power directly into vehicles.
Apple’s own recent price increases on Macs and iPads, driven by rising memory chip costs, show how that same supply pressure is already reaching consumers rather than staying contained to corporate balance sheets.
Broadcom’s extension with Apple will be remembered less as a wireless chip renewal and more as an early marker of how AI infrastructure needs reshaped even the most established supplier contracts in tech.
Increasingly, the company that locks in supply first is winning, not the one that pays the least.
Related: Apple’s 2027 hardware refresh sends Wall Street a warning
