Broadcom will become one of the initial partners in Apple’s American Manufacturing Program, announced on Wednesday.
Broadcom Inc. (AVGO) has garnered interest among retail investors after tech giant Apple Inc. (AAPL) announced on Wednesday that the chipmaker will be one of the initial partners for its American Manufacturing Program (AMP).
Apple said it is also deepening its collaboration with Broadcom to design and produce additional cellular semiconductor parts within the United States. These components play an essential role in supporting 5G connectivity across Apple’s products. Broadcom stock traded over 1% higher in Thursday’s premarket.
A bullish Stocktwits user commended the partnership announcement.
Apple’s new $100 billion commitment to boost domestic production is a part of an expanded plan to bolster American manufacturing. Over the next four years, the company expects its total U.S. investment to hit $600 billion, which will also include ramped-up supplier partnerships.
The AMP aims to solidify Apple’s ties with U.S.-based production facilities. Other partners in the program include Corning, Texas Instruments, Amkor, and GlobalWafers.
Apple’s increased focus on local production will likely boost Broadcom’s business. The company offers semiconductor, software, and security solutions to support mobile, broadband, and hybrid cloud operations.
On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels.
In the second quarter (Q2), Broadcom’s revenue climbed 20% year over year (YoY) to $15 billion, beating the $14.97-billion consensus estimate, as per Fiscal AI data. AI revenue surged 46% year-over-year to $4.4 billion, driven by strong demand for AI networking solutions.
The company will release its third quarter (Q3) earnings on September 4 and expects revenue of $15.8 billion, in line with the consensus estimate. Broadcom stock has gained over 30% year-to-date and over 121% in the last 12 months.
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