Broadcom shares jumped over 6% on Wednesday (Thursday AEDT) on news it is developing its own artificial intelligence (AI) chip for Apple.
The chip, called Baltra, is the iPhone maker’s first server chip specially designed for artificial intelligence processing, and it is expected to hit mass production in 2026, according to Reuters.
Other big technology companies have already moved to develop their own chip networking technology to power compute-heavy AI services, in a bid to curb their reliance on AI chip giant Nvidia, amid pricey processors.
The chip will use Taiwan Semiconductor's (TSM) cutting-edge N3P process, which produces chips for Nvidia and is an Apple supplier.
Last May, Apple signed a multi-billion-dollar deal with Broadcom to develop 5G radio frequency components.
Shares of Broadcom (NASDAQ: AVGO) jumped 6.6% to close at $183.20, while Apple (NASDAQ: AAPL) shares hit an intraday record high before closing 0.52% lower at $246.49.