Apple and Broadcom Forge a Decade-Long Silicon Fortress

Apple and Broadcom have extended their strategic partnership through 2031, securing custom silicon supply for Apple's proprietary AI server chips (Baltra) and connectivity components. The 10-year agreement provides supply chain stability amid semiconductor inflation, with Broadcom gaining predictable revenue (20% of annual top line) and Apple protecting its margins. Both companies are executing significant share buyback programs, with Broadcom trading at ~$371 with a forward P/E of 35.5x and 72% projected earnings growth.