Apple said it’s expanding its partnership with chipmaker Broadcom in a multi-year deal expected to exceed $30 billion, marking the iPhone maker’s largest U.S. manufacturing commitment to date.

The agreement, announced by Apple on Wednesday, will lead to the production of more than 15 billion U.S.-made chips and includes a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado. Apple didn’t provide a timeline for when the new capacity will come online.

Broadcom has long supplied Apple with connectivity components, but the new agreement deepens that relationship around U.S.-made custom silicon. Apple said Broadcom will make wireless components used to help devices connect to cellular, Wi-Fi and Bluetooth networks.

Broadcom disclosed in a filing with the Securities and Exchange Commission on Monday that it had entered into new long-term agreements with Apple to develop and supply “custom ASIC silicon products” for multiple generations of Apple products through 2031. ASICs are application-specific integrated circuits and are increasingly being used for artificial intelligence workloads.

For Tim Cook, Apple’s outgoing CEO, the agreement marks his latest push to invest in American manufacturing, a major point of emphasis for the Trump administration. It’s the biggest piece of his company’s $600 billion, four-year U.S. investment plan, announced in 2025, and marks the largest commitment to date under its American Manufacturing Program, or AMP, launched to expand domestic production across its supply chain.

“Apple has been working with the Administration and businesses across the U.S. to help create an end-to-end silicon supply chain in America, and today’s announcement advances those efforts,” Apple said in the release.

Cook said the components built in Fort Collins are “essential” to the performance and connectivity Apple customers expect, and he thanked President Donald Trump and his administration for supporting the project.

Broadcom CEO Hock Tan said Apple’s commitment will help the chipmaker expand its manufacturing footprint in Fort Collins.

WATCH: Apple faces AI memory crunch with upcoming iPhone lineup

Technology stocks fell in premarket trading Thursday, with chipmakers Broadcom, Micron Technology and Marvell Technology leading the losses as investors fled the semiconductor space.

Broadcom shares were down 15.1% ahead of the market open after the company, which designs and makes customized AI chips for other technology names, reported weaker-than-expected earnings on Wednesday.

The fall was part of a broader retreat from chipmakers and other tech stocks ahead of Thursday’s market open.

Micron Technology was down 7.1% in premarket trading, while Marvell Technologies had fallen 7.5%.

Elsewhere, Qualcomm shed 3.9%, with Intel falling 4.1%, and AMD down 4.3% ahead of the opening bell.

Futures tied to the tech-heavy Nasdaq were last seen 1.4% lower.

AI memory chips have been a key theme in the equity market rally in recent weeks. Thursday’s retreat led equities markets lower, with the S&P 500 futures last seen 0.7% down.

In a note Thursday, HSBC analysts led by Max Kettner, chief multi-asset strategist, flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries.”

Keith Lerner, CIO and chief market strategist at Truist Wealth, said that a sell-off was normal after a strong run, adding that “we’re due for a rest.”

“We’ve come a long way. Fundamentals are solid,” he said on CNBC’s “Closing Bell” on Wednesday.

“Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back. We’ve had three steps forward, so maybe at least a mini step back, or at least some sideways chop.”

Shares in Broadcom rose 3.7% in premarket trading on Tuesday after the chip designer announced it would produce future versions of artificial intelligence chips for Google, and signed an expanded deal with Anthropic.

The latter deal will give the AI startup access to about 3.5 gigawatts worth of computing capacity, drawing on Google’s AI processors and providing some relief for the share price.

Broadcom stock has endured a tough start to 2025, falling almost 10% year-to-date as investors have become increasingly jittery around the bull case for technology stocks. It has also been caught up in the maelstrom of the wider market caused by the U.S.-Israeli attack on Iran that began on February 28. 

The drift downwards comes despite a blowout earnings report in March, during which CEO Hock Tan touted strong future demand for the company’s chips.

He told analysts last month that he anticipates AI chip revenue in 2027 that’s “significantly in excess of $100 billion” as demand mounts for designing custom silicon.

Analysts remain bullish following Monday’s announcements. 

“The deal includes revenue commitments across that timeline, which should help ease some of the recent nervousness around TPU competition and give a clearer signal that its largest customer sees meaningful demand visibility well into the future,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. 

“We already saw upside to medium-term revenue and profit expectations off the back of recent results; these new deals help underpin that idea if deployment ramps as planned.”

Citi analysts maintained their ‘Buy’ rating for the stock, backing Broadcom to surpass its $100 billion revenue target to more than $130 billion off the back of the Google deal. 

— CNBC’s Jordan Novet also contributed to this report.

Broadcom‘s stock surged about 5% on Thursday as CEO Hock Tan touted strong demand for the company’s chips amid the artificial intelligence boom.

He told analysts on Wednesday that he anticipates AI chip revenue in 2027 that’s “significantly in excess of $100 billion” as demand mounts for designing custom silicon.

That far surpassed many bullish estimates from Wall Street analysts, who now anticipate more potential upside after Tan said the company is nearing 10 gigawatts of capacity between six customers.

Analysts at JPMorgan estimate that the company can reach between $12 billion and $15 billion in revenue per gigawatt by 2027 and lifted the firm’s AI revenue estimates “conservatively” to $120 billion or more.

The company’s “leadership in AI networking and custom silicon enables the lowest inference cost for its hyperscaler customers, and we see it delivering ongoing cost reductions on pace with market leader Nvidia,” wrote analysts at Goldman Sachs.

The comments came alongside Broadcom’s better-than-expected quarterly results, in which AI revenue more than doubled due to AI accelerator and networking demand.

Over the last few months, chipmakers have grappled with a shortage in high-bandwidth memory as AI demand snaps up supply. But Tan told analysts that the company has secured memory and leading-edge wafer supply through 2028.

Tan managed to convince investors of Broadcom’s sustainable growth trajectory, allaying fears about the company’s profitability and questions about whether Broadcom shipping more racks packed with AI chips would weigh on margins. By comparison, leading AI chipmaker Nvidia’s blowout report last month wasn’t enough to convince investors.

“We have gotten our yields, we’ve gotten our cost to the point where the model we have in AI will be fairly consistent with the models we have in the rest of the semiconductor business,” Tan told analysts.

More hyperscalers making their own chips has also sparked some fears that Broadcom could get cut out of the market. However, Tan said the difficulty of competing against a juggernaut like Nvidia should benefit the company over “many years to come.”

Large language model makers “cannot afford to have a chip that is just good enough,” he said. “You need the best chips around because you’re competing against other LLM players, and most of all, you’re also competing against Nvidia, who is by no means letting their guard down.”

Broadcom’s upbeat results benefited Credo and Amphenol on bets that customers are opting for copper connectivity — the chipmaker’s core business segment — over optical technology to connect AI servers. Shares rallied 10% and 4%, respectively.

Lumentum and Coherent, which make newer optical tech, fell over 4% each.

— CNBC’s Jordan Novet and Katie Tarasov contributed reporting

Broadcom is set to report fiscal first-quarter results after market close on Wednesday.

Here’s what analysts polled by LSEG are expecting:

• Earnings per share: $2.03 adjusted
• Revenue: $19.18 billion

At that scale, analysts are projecting nearly 29% revenue growth year over year.

The company has benefited from rising demand for artificial intelligence infrastructure, touting a 65% jump in AI revenue in fiscal 2025. Broadcom contributes to the development of Google’s tensor processing units, or TPUs.

In December, CEO Hock Tan called for fiscal first-quarter AI revenue to double to $8.2 billion.

So far in 2026, Broadcom shares have come down 9%, trailing the S&P 500 index, which is flat over the same period.

“In our view it is likely caught up in investor concerns that 2026 marks a peak” in capital expenditures on AI equipment, wrote analysts at Evercore, who recommend buying Broadcom stock, in a Monday note to clients.

Meanwhile, software stocks have been under pressure for weeks as investors ponder competitive threats from generative AI models. Broadcom bought server virtualization software company VMware in 2023.

Analysts are looking for $12.25 billion in revenue from semiconductor solutions and $7.02 billion from infrastructure software. During the quarter, Broadcom announced new Wi-Fi 8 chips.

For the fiscal second quarter, analysts polled by LSEG are expecting $2.17 in adjusted earnings per share on $20.56 billion in revenue.

Executives will discuss the results on a conference call starting at 5 p.m. ET.

WATCH: I’d pick Broadcom, Nvidia first if buying tech stocks, says Niles Investment’s Niles

In November, following Nvidia’s latest earnings beat, CEO Jensen Huang boasted to investors about his company’s position in artificial intelligence and said about the hottest startup in the space, “Everything that OpenAI does runs on Nvidia today.”

While it’s true that Nvidia maintains a dominant position in AI chips and is now the most valuable company in the world, competition is emerging, and OpenAI is doing everything it can to diversify as it pursues a historically aggressive expansion plan.

On Wednesday, OpenAI announced a $10 billion deal with chipmaker Cerebras, a relatively nascent player in the space but one that’s angling for the public market. It was the latest in a string of deals between OpenAI and the companies making the processors needed to build large language models and run increasingly sophisticated workloads.

Last year, OpenAI committed more than $1.4 trillion to infrastructure deals with companies including Nvidia, Advanced Micro Devices and Broadcom, en route to commanding a $500 billion private market valuation.

As OpenAI races to meet anticipated demand for its AI technology, it has signaled to the market that it wants as much processing power as it can find. Here are the major chip deals that OpenAI has signed as of January, and potential partners to keep an eye on in the future.

Nvidia 

Since its early days building out large language models, long before the launch of ChatGPT and the start of the generative AI boom, OpenAI has relied on Nvidia’s graphics processing units.

In 2025, that relationship went to another level. Following an investment in OpenAI in late 2024, Nvidia announced in September that it would commit $100 billion to support OpenAI as it builds and deploys at least 10 gigawatts of Nvidia systems. 

A gigawatt is a measure of power, and 10 gigawatts is roughly equivalent to the annual power consumption of 8 million U.S. households, according to a CNBC analysis of data from the Energy Information Administration. Huang said in September that 10 gigawatts will equate to between 4 million and 5 million GPUs. 

“This is a giant project,” Huang told CNBC at the time. 

OpenAI and Nvidia said the first phase of the project is expected to come online in the second half of this year on Nvidia’s Vera Rubin platform. However, during Nvidia’s quarterly earnings call in November, the company said there is “no assurance” that its agreement with OpenAI will progress beyond an announcement and to an official contract stage. 

Nvidia’s first investment of $10 billion will be deployed when the first gigawatt is completed, and investments will…

In at least one corner of the artificial intelligence market, sentiment has turned decidedly negative.

Broadcom, CoreWeave and Oracle, three companies intimately tied to the AI infrastructure buildout, all had another rough day on Wall Street on Monday after selling off sharply last week.

While the three stocks are all still solidly up for the year — CoreWeave held its market debut in March — the most recent trend suggests that investors are concerned about whether the returns on investment will ever justify the level of spending taking place.

“It definitely requires the ROI to be there to keep funding this AI investment,” Matt Witheiler, head of late-stage growth at Wellington Management, told CNBC’s “Money Movers” on Monday. “From what we’ve seen so far that ROI is there.”

Witheiler said the bullish side of the story is that, “every single AI company on the planet is saying if you give me more compute I can make more revenue.”

Still, the market was displeased last week with quarterly earnings reports from chipmaker Broadcom and cloud infrastructure supplier Oracle, even though both companies beat on revenue and issued forecasts showing that AI demand is soaring.

Oracle, which is now heavily reliant on the debt markets to fund its data center development, provided scant details about how it will continue to finance its commitments. The company said it would ramp up capital expenditures in the current fiscal year to $50 billion from an earlier forecast of $35 billion because of new contracts from the likes of Meta and Nvidia.

It’s also ratcheting up leases. As of Nov. 30, Oracle had $248 billion in lease commitments for data centers and cloud capacity commitments that will run for 15 to 19 years. That’s up 148% from the end of August.

Meanwhile, Broadcom CEO Hock Tan said he expects AI chip sales this quarter to double from a year earlier to $8.2 billion, driven by both custom chips as well as semiconductors for AI networking.

However, as the company spends heavily on more parts to produce server racks, investors are going to have to stomach a hit to profits. CFO Kirsten Spears said on Broadcom’s earnings call that “gross margins will be lower” for some of the company’s AI chip systems.

Broadcom shares fell 5.6% on Monday following an 11% slump on Friday, leaving them 18% below their record high reached on Wednesday.

Oracle dropped 2.7% on Monday and is now down 17% in the past three trading days. The company has lost 46% of its value since Sept. 10, when the stock had its best day since 1992 following disclosure of a massive AI backlog.

Venture capitalist Tomasz Tunguz, who focuses on enterprise software and AI, wrote in a Monday blog that Oracle’s recent fundraising binge has left it with a debt-to-equity ratio of 500%, “dwarfing its cloud computing peers.” Amazon, Microsoft, Meta and Google all have ratios between 7% and 23%, he wrote.

Tunguz, founder of Theory Ventures, said the other…