Broadcom announced a surprise five-year custom AI chip extension with Apple, expanding Broadcom's silicon portfolio depth.

Broadcom shares climbed more than 5% on Monday morning after the chipmaker secured a new multiyear agreement with Apple to provide custom application-specific integrated circuit chips. The arrangement extends Broadcom's long-running relationship with Apple through 2031 and covers the development and supply of custom silicon products for future generations of Apple devices. Broadcom did not disclose financial terms or shipment details in the filing.

Broadcom has maintained a sizable role within Apple's supply chain for years, providing connectivity and networking technologies used across products including iPhones and other devices. Analysts estimate Apple contributes roughly 20% of Broadcom's annual revenue, making the relationship a significant component of the company's business mix.

The deal underscores Broadcom's expanding role in artificial intelligence infrastructure. Earlier this year, Broadcom expanded its work with Meta to support AI infrastructure and accelerator chips through 2029. The company also recently collaborated with OpenAI on a chip designed for large language model inference workloads.