Help Broadcom strengthens collaboration with Apple; US services PMI continues to expand
Broadcom shares rose after the company expanded its Apple supply agreement through 2031, strengthening revenue visibility and reinforcing its custom-chip franchise. Meanwhile, the US services PMI remained in expansionary territory for a 24th consecutive month, with employment rebounding and supporting broader equity gains across major benchmarks.
Broadcom extended its Apple supply agreement through 2031, reinforcing its role as a key custom-chip partner.
Apple generates about 20% of Broadcom’s revenue, giving the company stronger visibility over future demand.
Broadcom shares rose by 3.73% to $373.90, lifting its market capitalisation to roughly $1.78 trillion.
The US ISM services PMI remained at 54.0, marking 24 months of expansion, while the employment component rebounded to 51.2 points.
Broadcom strengthens collaboration with Apple
According to a Reuters report, Broadcom has extended and expanded its long-term supply agreement with Apple through 2031, reinforcing its position as one of the technology giant’s key semiconductor partners. The agreement covers the development and supply of custom chips, further strengthening a relationship that remains a cornerstone of Broadcom’s business model. Reuters noted that approximately 20% of Broadcom’s annual revenue is generated from Apple, highlighting the strategic importance of this partnership and providing greater visibility over future revenue streams.
Following the announcement, Broadcom shares rose by 3.73% to $373.90, reflecting investors’ positive reaction to the extension of the agreement and the prospect of sustained demand from one of the world’s largest technology companies. The renewed partnership also underscores Broadcom’s competitive position in the custom semiconductor market, where long-term customer relationships are critical to growth and profitability.
As a result of the share-price appreciation, Broadcom’s market capitalisation reached approximately $1.78 trillion, consolidating its position among the most valuable companies in the United States. According to Finviz data, the company ranks as the sixth-largest constituent of the S&P 500 Index, reflecting its growing influence within both the semiconductor industry and the broader equity market. The announcement further strengthens investor confidence in Broadcom’s long-term growth prospects, supported by stable demand from Apple and continued expansion in high-performance computing and artificial intelligence-related technologies.
US services PMI stays in expansion territory, while the employment component exhibits recovery
According to data released by the Institute for Supply Management (ISM), the US Services Purchasing Managers’ Index (PMI) edged down from 54.5 points in May to 54.0 points in June, in line with market expectations. Although the reading declined marginally, it remained comfortably above the 50-point threshold, indicating continued expansion in the services sector. The latest figure also marks the 24th consecutive month of growth, underlining the resilience of an industry that accounts for more than two-thirds of US economic activity.
According to an analysis by Trading Economics, business activity growth eased from 57.7 points in May to 55.4 points in June, new orders decelerated from 57.3 to 55.1 points, while price inflation eased from 71.3 to 67.7 points over the same period. By contrast, the employment index rose from 47.9 to 51.2, representing its largest increase since 2024. This improvement suggests that hiring conditions have strengthened, indicating renewed confidence among service-sector firms despite signs of moderating business activity.
Overall, while some components of the Services PMI softened in June, the report continued to signal a healthy pace of growth in the sector. The rebound in the employment component is particularly noteworthy, as it points to improving labour-market conditions and reinforces the view that the US services sector remains a key source of economic resilience.
At market close, US stock benchmarks rose in tandem: the S&P 500 index advanced by 0.72% to 7,537 points, the Nasdaq 100 increased by 1.26% to 29,697, while the Dow Jones Industrial Average appreciated by 0.29% to 53,061 points.
Figure 1. US ISM Services PMI (2025-2026). Source: Data from the Institute for Supply Management (ISM). Figure obtained from Trading Economics.
Key economic events this week
Several critical economic indicators are scheduled for release this week, with the following being of particular importance to market participants:
Monday
- US: ISM Services PMI
Tuesday
- Canada: Ivey PMI
Wednesday
- US: FOMC Minutes
- US: EIA Crude Oil Stocks Change
Thursday
- China: Inflation Rate
- Germany: Balance of Trade
- US: Existing Home Sales
Friday
- Canada: Unemployment Rate
