Broadcom Stock Jumps On Apple AI Chip Report: What's Going On?

Broadcom Inc AVGO shares are trading higher Wednesday following a report indicating the company is working with Apple Inc AAPL on AI chip development.

What To Know: According to a report from The Information, Apple is working with Broadcom to develop a server chip designed for AI tasks.

Three people with direct knowledge of the matter said the AI server chip aims to help the company keep up with high computing demands of its new AI features. Apple is reportedly working with Broadcom on development of the chip's networking technology.

Broadcom shares jumped approximately 5% on the news. Apple shares were also higher at last check.

Apple unveiled AI features, or Apple Intelligence, for its latest products at its Worldwide Developers Conference earlier this year. In Apple’s most recent earnings release, the company said new Apple Intelligence capabilities supercharged its product lineup heading into the holiday season.

Broadcom is due to report fourth-quarter financial results after the market close on Thursday. Analysts expect the company to report earnings of $1.38 per share and revenue of $14.097 billion, according to estimates from Benzinga Pro.

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AVGO Price Action: Broadcom shares were up 5.08% at $180.53 at the time of publication, according to Benzinga Pro.

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