Apple Inc. (AAPL) and Broadcom Inc. (AVGO) have announced a major expansion of their semiconductor partnership, expected to exceed $30 billion over multiple years. The agreement allows Broadcom to design and manufacture custom silicon and advanced wireless technologies for Apple products, significantly enhancing its U.S. manufacturing capabilities, with plans to produce over 15 billion U.S.-made chips.
This partnership aims to strengthen Apple’s domestic supply chain while ensuring access to essential wireless components through 2031. Broadcom anticipates that Apple, whose revenue contributes approximately 20% to its annual income, will provide a more stable revenue stream moving forward. Broadcom will invest about $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado, as part of this agreement.
Apple’s annual earnings are projected to rise 17% this year, while Broadcom’s earnings are expected to spike over 70% to $11.73 per share in fiscal 2026. Both companies currently hold a Zacks Rank of #3 (Hold), but Broadcom may see a positive revision in ratings based on earnings growth trends.
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