Broadcom (NASDAQ: AVGO) has secured an expanded partnership with Apple (NASDAQ: AAPL), committing over $30 billion for chip production through 2031. This deal is set to produce 15 billion chips and is crucial for Broadcom, which relies heavily on Apple for approximately 20% of its revenue. The agreement reduces the risk associated with customer concentration, stabilizing Broadcom’s financial outlook.
In its latest fiscal quarter ending May 3, 2026, Broadcom reported revenue of $22.2 billion, a 48% year-over-year increase, largely driven by its custom AI chips, which saw revenue growth of 143%. The company anticipates its AI chip revenue will continue to surge, projecting over 200% growth year-over-year in the upcoming quarter. Following the announcement of the deal with Apple, Broadcom’s stock rose by 40% over the past year, demonstrating strong market confidence.
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