
What happened
Broadcom announced in early July 2026 that it and Apple expanded their collaboration through 2031, with new multi-year agreements for Broadcom to develop and supply custom ASIC silicon across multiple generations of Apple products. This follows Broadcom's April 2026 deal with Google for Tensor Processing Units and equipment supply through 2031.
Why it matters
The extended agreements underpin Broadcom's US$110 billion(約18兆円) backlog and its AI-driven revenue guidance, reinforcing its role as a key infrastructure supplier to major technology platforms. However, investors should be aware that much of Broadcom's AI growth is concentrated in just a few large hyperscaler and platform customers, which poses a concentration risk if those customers reduce their spending.
What to watch
Broadcom's narrative projects $243.8 billion(約39兆円) revenue and $120.9 billion(約19兆円) earnings by 2029, requiring 47.8% yearly revenue growth and an earnings increase of about $91.6 billion(約15兆円) from $29.3 billion(約4.7兆円) today. The company's fair value is projected at $523.73, representing 36% upside to its current price, though some analysts estimate lower 2029 revenue of around US$164.5 billion(約26兆円) and warn of margin pressure from heavy reliance on a few AI customers.
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Broadcom's extension of its Apple agreement through 2031, announced in early July 2026, comes alongside an April 2026 deal with Google for Tensor Processing Units and equipment supply through the same end date. Together, these contracts anchor a US$110 billion(約18兆円) backlog and represent a deliberate strategy to position the company as the infrastructure backbone for major technology platforms' AI buildout.
The deal reflects confidence from two of the world's largest device makers and cloud operators that multi-year AI infrastructure investment will remain central to their strategies. However, the body of evidence also highlights a critical tension in Broadcom's investment narrative: while the company projects $243.8 billion(約39兆円) revenue by 2029 (requiring 47.8% yearly revenue growth), much of that growth depends on whether a handful of hyperscaler and platform customers—primarily Apple and Google—sustain their AI spending plans as outlined in these contracts. Some analysts already estimate significantly lower 2029 revenue of around US$164.5 billion(約26兆円) and warn that heavy customer concentration could quickly squeeze margins if spending slows, making execution risk on these few relationships arguably Broadcom's largest near-term vulnerability despite the apparent strength of multi-year commitments.
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