NEW YORK, July 8, 2026, 14:04 (EDT)
- Broadcom Inc. NASDAQ:AVGO was last up nearly 5% around $389, outpacing the Invesco QQQ Trust NASDAQ:QQQ, iShares Semiconductor ETF NASDAQ:SOXX, and the SPDR S&P 500 ETF Trust NYSEARCA:SPY in active trading.
- Apple Inc. NASDAQ:AAPL said its latest supply deal with Broadcom is worth more than $30 billion, calling out U.S.-built chips and specifying Fort Collins, Colorado as a manufacturing site.
- This deal eases some of Broadcom’s customer risk. But alone, it doesn’t match the AI revenue bar the stock already expects.
Broadcom’s latest rally is all about the longer timeline. Apple for the first time put a number on a supply extension Broadcom had already flagged with U.S. regulators. According to Broadcom’s SEC filing, the two are set to work into 2031, supplying custom ASIC silicon for new generations of Apple products. Apple now says the extended deal could add up to more than $30 billion, with the hope of making over 15 billion U.S.-made chips.
Broadcom stood out Thursday, bucking a weak session for big tech and outperforming chip peers. Shares traded at $389.17, up $18.39 around 1:49 p.m. EDT, after touching a session high of $395.03.
| Instrument | Last | Day move | Intraday range |
|---|---|---|---|
| Broadcom Inc. NASDAQ:AVGO | $389.17 | up 4.96% | $360.76 to $395.03 |
| Invesco QQQ Trust NASDAQ:QQQ | $708.62 | down 0.11% | $697.88 to $711.06 |
| iShares Semiconductor ETF NASDAQ:SOXX | $559.65 | gained 1.44% | $531.69 to $564.28 |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $744.35 | fell 0.45% | $739.34 to $747.03 |
The gap is important. Broadcom isn’t only up on chip demand. Traders are bidding the stock on lower Apple replacement risk. That’s happening while risk assets elsewhere are still getting sold.
The simple math is less startling than the one-day jump in the stock. Spreading $30 billion over 2031 comes out to about $6 billion a year. The companies didn’t break out the timing by year. Broadcom’s most recent quarter already brought in $22.187 billion in revenue, with $10.8 billion just from its AI chip sales.
| Measure | Reported figure | Read-through |
|---|---|---|
| Apple-Broadcom commitment | More than $30 billion; over 15 billion chips | By the math, that’s close to $6 billion per year, no official guidance |
| Broadcom Q2 revenue | $22.187 billion | Apple’s annual run-rate would be around 7% of Q2 revenue if you annualize |
| Broadcom Q2 AI semiconductor revenue | $10.8 billion, up 143% | AI still brings in most of the new growth |
| Broadcom Q3 revenue guide | About $29.4 billion | Expectations were high even before Apple gave a dollar figure |
Analyst say the issue is customer risk. Reuters said Apple makes up roughly 20% of Broadcom’s yearly sales, based on analyst estimates. Jacob Bourne at Emarketer said the Broadcom deal gives Apple “supply-chain certainty” and gives Broadcom “reassurance,” since Apple had tried making some chips on its own for years. Reuters
Apple CEO Tim Cook called Fort Collins components “essential” for performance and connectivity, while Broadcom chief Hock Tan said his firm is “proud to continue to work with Apple.” This is standard supplier talk, but the market took it as something more—Apple isn’t walking away from Broadcom when it comes to custom silicon and radio-frequency chips. Apple
For the stock, what Tan said in June is the key. He said Broadcom’s AI semiconductor revenue hit $10.8 billion in the second quarter, up 143%. He also guided to $16.0 billion for AI chip revenue in Q3. CFO Kirsten Spears put Q3 consolidated revenue at $29.4 billion.
This deal is the play. Apple hands Broadcom more time with a big client. AI chips and networking push Broadcom’s revenues up quicker. The stock is holding near session highs, priced for both stories, but just one segment has the volume to move earnings forecasts quickly.
Apple is playing defense here if AI demand cools. The deal keeps an important customer, limits the risk of losing share soon, and brings a boost for U.S. manufacturing. But it doesn’t fix the concentration problem. If anything, it could make it easier for investors to price in concentration risk.
Now Broadcom has to deliver on its $16 billion AI chip outlook and keep margins up as revenue climbs. A stumble on either front could turn the Apple deal from extra upside into a safety net.
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