Broadcom Inc. (NASDAQ:AVGO) shares are trading higher following a report suggesting that the company and Apple Inc. (NASDAQ:AAPL) will expand their partnership through 2031.

The Deal

According to Reuters, Broadcom and Apple have agreed to expand their partnership through 2031, covering the development and supply of a range of custom chips. Broadcom has been a long-standing supplier to Apple, providing key components including custom radio frequency chips used in iPhones, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors.

Apple is one of Broadcom’s largest customers, with analysts estimating the iPhone maker accounts for a major chunk of Broadcom’s annual revenue, making it a critical contributor to the chip firm’s semiconductor business.

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Broadcom Shares Race Higher

AVGO Price Action: At the time of publication, Broadcom shares are trading 4.15% higher at $375.40, according to data from Benzinga Pro.

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