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Broadcom Extends Apple Chip Deal to 2031, Stock Jumps 4% on ‘Edge AI’ Focus

Broadcom and Apple extended their chip partnership through 2031, with a new focus on edge AI. Shares surged nearly 4% in Monday trading and continued climbing Tuesday.

OurAlpha

08 Jul 2026 — 3 min read

Broadcom and Apple extended their chip partnership to 2031, with edge AI chips taking center stage.

Broadcom (AVGO) announced Monday it extended its chip supply agreement with Apple (AAPL) through 2031, with a focus on “edge AI” chips. Shares rallied Monday and continued higher in Tuesday trading.

As of 11:30 a.m. ET Tuesday, Broadcom traded at $385.22, up 3.89% (+$14.44) from Monday’s close of $370.78.
Broadcom and Apple extended their chip partnership to 2031, with the new deal bringing Broadcom’s AI chips into “edge” devices.^[Reuters]
Apple shares rose 1.31% Monday and were up 1.05% in Tuesday trading at $242.15.^[Barron's]
Broadcom closed Monday up 3.73%, extending last week’s AI sector rebound.^[Barron's]
Last week, AI storage stocks like Micron (MU), Seagate (STX), and SanDisk (SNDK) saw sharp pullbacks, but sentiment rebounded Monday with the AI sector leading gains.^{[InvestorPlace]}
The S&P 500 and Nasdaq both rose Monday, with tech stocks regaining their role as market drivers.^[Barron's]

Broadcom (AVGO) announced Monday (July 6) a major extension of its chip supply agreement with Apple (AAPL), pushing the partnership through 2031. The news sent Broadcom shares up 3.73% in Monday trading, and they continued climbing Tuesday (July 8). As of 11:30 a.m. ET, Broadcom traded at $385.22, up 3.89% (+$14.44) from Monday’s close of $370.78, with an intraday high of $390.34 and a low of $373.975.^[^Barron's^]

New Deal Focuses on ‘Edge AI,’ Apple Partnership Extended Five Years

According to Reuters and Barron’s, the new agreement not only extends existing chip supply but, crucially, brings Broadcom’s AI chips into “edge” devices.^[^Reuters^] Barron’s analysis notes this means Broadcom’s AI chips will no longer be confined to data centers but deployed in phones, tablets, and other end-user devices — the so-called “edge AI” play.^[^Barron's^] Apple shares rose 1.31% Monday and were up about 1.05% in Tuesday trading at $242.15.^[^Barron's^]

AI Sector Bounces Monday, Last Week’s Pullback Seen as ‘Washout’

Broadcom’s Apple news landed as the AI sector rebounded from a sharp selloff last week. According to InvestorPlace, several AI storage chip stocks took a beating last week: Micron (MU) fell about 14% over five sessions, Seagate (STX) dropped nearly 18%, and SanDisk (SNDK) lost nearly 20%.^[^{InvestorPlace}^] The report cites analysts who view last week’s selloff as more of a Wall Street trading pattern than a fundamental shift — a view supported by Monday’s bounce.^[^{InvestorPlace}^]

Barron’s “Review & Preview” column also noted that tech stocks retook the market’s driver’s seat Monday, with AI names trying to reclaim lost ground and lifting the S&P 500 and Nasdaq.^[^Barron's^] The Dow Jones Industrial Average also closed above 53,000 for the first time Monday.^[^CNBC^]

Wall Street Analyst Calls: Multiple Firms Bullish on Tech and Clean Energy

In Tuesday’s analyst reports, several firms weighed in on tech and clean energy. According to CNBC, KeyBanc reiterated its “Overweight” rating on Nvidia (NVDA), arguing the company “remains uniquely and well-positioned” for data center growth in AI and machine learning.^[^CNBC^] Separately, Deutsche Bank upgraded First Solar from “Hold” to “Buy,” citing its strong balance sheet and position as a U.S.-based panel manufacturer with solid fundamentals.^[^CNBC^]

Market Outlook: Q2 Earnings Season on the Horizon

Markets are now turning their attention to the second-quarter earnings season, which kicks off July 23. InvestorPlace analysis suggests earnings reports could reveal where Wall Street capital flows next.^[^{InvestorPlace}^] Meanwhile, SpaceX (ticker not provided) officially joins the Nasdaq 100 on Tuesday, with shares closing Monday at $160.42, near its debut close of $160.95.^[^CNBC^]