Apple has pledged to spend more than $30 billion（約4.8兆円） on custom Broadcom-based chips and wireless technologies in the coming years, with Broadcom investing $1.5 billion（約2400億円） to expand a Colorado facility. The deal bolsters Broadcom's struggling non-AI business while the company pursues aggressive growth in custom AI chips, where it helps hyperscalers—large cloud providers including Alphabet—design their own chips for mass production.
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Apple committed to spending more than $30 billion（約4.8兆円） on custom Broadcom-based chips and wireless connectivity technologies over the coming years. As part of the deal, Broadcom will invest $1.5 billion（約2400億円） to expand and modernize a facility in Fort Collins, Colorado that produces radio frequency components and wireless connectivity technologies.
Why it matters
Broadcom's non-AI business has struggled, but the company said last quarter it saw a clear path toward 'a full cyclical recovery.' This Apple deal supports that recovery and adds another growth element beyond the company's dominant AI chip business. For investors, Broadcom trades at a forward P/E of just above 20.5 times fiscal 2027 estimates—a potentially attractive valuation for a company positioned to see strong growth.
What to watch
Broadcom's custom chip revenue is projected to exceed $100 billion（約16兆円） in fiscal 2027, up from $20 billion（約3.2兆円） in AI revenue in fiscal 2025. Analysts at Citigroup have projected the company's AI revenue could surge to $180 billion（約29兆円） in 2028.
Broadcom's strength has historically centered on its AI chip business, where it plays a critical role helping major cloud providers design custom silicon for mass production. The company helped Alphabet develop its successful TPUs and is now riding the surge in deployment as Alphabet and other hyperscalers spend aggressively on AI infrastructure. However, its non-AI business has struggled in recent quarters, making the Apple deal strategically significant: it demonstrates renewed demand outside the AI sector and signals a path toward what the company describes as 'a full cyclical recovery.'
The scale of Apple's commitment—more than $30 billion（約4.8兆円） over the coming years—underscores both Broadcom's importance to a major customer and the capital intensity of advanced chip and wireless technology development. The $1.5 billion（約2400億円） investment in the Colorado facility is a concrete signal of Broadcom's confidence in sustained demand for these technologies. Against this backdrop, Broadcom's valuation at a forward P/E just above 20.5 times fiscal 2027 estimates appears modest for a company positioned to grow custom chip revenue beyond $100 billion（約16兆円） by fiscal 2027, assuming execution goes as planned.
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