NEW YORK, July 6, 2026, 09:09 (EDT)
- Broadcom Inc. NASDAQ:AVGO traded 3.74% higher at $373.94 in premarket after it said it extended its chip-supply deal with Apple Inc. NASDAQ:AAPL through 2031.
- Analysts cited by Reuters say Apple makes up around 20% of Broadcom’s yearly revenue.
- Nasdaq trading was set to resume at 9:30 a.m. ET after the exchange stayed shut July 3 for the Independence Day holiday.
Broadcom Inc. NASDAQ:AVGO traded higher in premarket on Monday after saying it will extend its chip partnership with Apple Inc. NASDAQ:AAPL through 2031. The new deal makes Broadcom more of a long-term supplier to Apple, aiming at contract length instead of just another AI-chip move. Broadcom will supply a range of custom chips to Apple, which makes up around 20% of Broadcom’s yearly sales, analysts told Reuters.
Broadcom was trading at $373.94 in MarketWatch’s delayed quote at 8:45 a.m. EDT, up $13.49 from its $360.45 close. With 4.76 billion shares on the table, that premarket move works out to nearly $64 billion in market cap added before the open.
| Broadcom price item | Latest figure | Investor read |
|---|---|---|
| Premarket quote | $373.94, +3.74% | Wipes out the 2.41% drop from last session |
| Last regular close | $360.45, -2.41% | This is where it finished ahead of the holiday |
| Premarket dollar change | +$13.49 | Move implies a market cap shift of about $64 billion on 4.76 billion shares |
| Market value shown | $1.71 trillion | Still trading like a heavyweight chip stock |
| 52-week range | $269.58-$495.00 | Stock sits off June’s AI-guidance high |
The key is the market isn’t just reacting to the 3.7% gain. The move is about securing a six-year deal with a customer that analysts say accounts for around 20% of revenue. This comes as Apple is bringing more chip design inside, and Broadcom trades on a price many investors tie to AI infrastructure stocks.
| Customer or program | Confirmed Broadcom tie | Date investors can price |
|---|---|---|
| Apple Inc. NASDAQ:AAPL | Custom silicon, RF and connectivity parts. Analysts say Apple is roughly 20% of Broadcom’s annual sales. | Through 2031 |
| Alphabet Inc. NASDAQ:GOOGL’s Google | Next-gen AI-rack hardware and planned custom AI chips. | Through 2031 |
| Anthropic | About 3.5 GW of AI compute using Google chips. | Starts 2027 |
The 2031 end date is key. Broadcom made a long-term agreement with Google in April to build and supply custom AI chips and AI rack hardware up to 2031. Anthropic is linked to about 3.5 gigawatts of Google-chip compute starting in 2027. Reuters Monday’s pact with Apple gives Broadcom a big device customer on the same schedule.
Broadcom’s last earnings report stood out for its blunt numbers. Second-quarter revenue came in at $22.187 billion and AI semiconductor revenue reached $10.8 billion, which is up 143% from the same time last year. For the third quarter, Broadcom is guiding for revenue of about $29.4 billion and $16.0 billion in AI semiconductor revenue.
The numbers didn’t get it done for the stock last month. Broadcom’s Q2 revenue came in shy of the $22.27 billion Wall Street estimate, Reuters said. The company also guided to $16 billion in AI chip sales, below analysts’ $16.36 billion forecast from Visible Alpha. CEO Hock Tan stuck to the big $100 billion AI-chip sales goal for 2027.
“Nothing changes from what was expected before—just no hike,” said Ben Bajarin, chief executive of Creative Strategies, after the June report. Ryan Lee, senior vice president of product and strategy at Direxion, said the “market demands perfection.” Reuters
Hargreaves Lansdown’s Matt Britzman said the June drop was “very high expectations” running into a market “that wanted perfection.” Bernstein’s Stacy Rasgon thinks Broadcom could “take a pause,” but said 2027 could be the year to watch. Reuters
The new Apple deal narrows a key risk for investors—losing a major non-AI client in the gap. But the big AI issue is still unsolved. Broadcom needs to prove its custom AI business can ramp up and compete with Nvidia Corp. NASDAQ:NVDA and Marvell Technology Inc. NASDAQ:MRVL. Margins and supply are still in focus.
Wall Street futures traded up before the bell, lifted by gains in chip stocks, Reuters reported. S&P 500 and Nasdaq futures were both higher. Reuters Nasdaq’s holiday schedule listed July 3 closed for Independence Day, with the market open on its usual 9:30 a.m. to 4:00 p.m. ET weekdays.
Dow Jones Newswires said in a MarketScreener post the Apple extension terms weren’t disclosed.
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