Broadcom up following report of Apple working on AI chip with chipmaker

Investing.com -- Broadcom Inc (NASDAQ:AVGO ) shares up more than roughly 5% before the opening bell on Wednesday after a report that Apple Inc (NASDAQ:AAPL ) was working with the chipmaker to develop its first server chip tailored for artificial intelligence.

The Information, citing sources familiar with the matter, reported that Broadcom is collaborating with Apple to provide networking technology critical for AI processing as part of the project.

Broadcom, which typically sells chips directly to customers rather than licensing its intellectual property, is offering a more limited range of design services to Apple while still supplying its networking technology, one of the sources said.

The chip, internally code-named "Baltra," is expected to be ready for mass production by 2026. If successful, it would represent a major achievement for Apple's silicon team, further cementing the company’s efforts to expand into AI-driven hardware.

Source: Investing.com