Why Broadcom Stock Rose Today
Key Points
Broadcom will help Apple make more of its custom-designed chips in the U.S.
The semiconductor giant is expanding its domestic production network.
- 10 stocks we like better than Broadcom ›
Shares of Broadcom (NASDAQ: AVGO) climbed on Wednesday after the chipmaker struck a lucrative supply deal with Apple (NASDAQ: AAPL).
Image source: The Motley Fool.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Joining forces to bolster U.S. chip production
The two companies will work together to develop "custom silicon components and cutting-edge wireless connectivity technologies for a wide range of Apple products," Apple announced on Wednesday.
The multiyear deal is valued at over $30 billion and is expected to produce more than 15 billion U.S.-made chips.
Apple has promised to invest $600 billion in the U.S. by the end of the decade as it strives to build an "end-to-end silicon supply chain in America." As part of the collaboration, Broadcom will expand its manufacturing plants in Fort Collins, Colorado.
"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Apple CEO Tim Cook said.
This deal is a win-win-win
The chip production agreement with Broadcom will help Apple diversify its supply chain and reduce its reliance on potential geopolitical hotspots like Taiwan. That's good for both companies, their customers, and their shareholders.
The investments in U.S.-based production could also help Apple and Broadcom gain favor with the Trump administration, which has prioritized domestic manufacturing.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,208,693!*
Now, it’s worth noting Stock Advisor’s total average return is 917% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 8, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Broadcom. The Motley Fool has a disclosure policy.
Recommended Articles
