Broadcom announced it will extend its chip design and supply partnership with Apple through 2031, providing a long-term revenue anchor for the chipmaker just as semiconductor stocks staged a broad recovery Monday following one of the sector's sharpest two-day sell-offs of the year.
The agreement keeps Apple — one of Broadcom's largest customers — in the fold for custom chip development, reinforcing the chipmaker's position as a key design partner for major technology companies. Broadcom shares gained roughly 4% on Monday, while Apple rose approximately 1%.
The rebound came after a difficult stretch for the sector. The iShares Semiconductor ETF fell 6.4% on Wednesday and 5.6% on Thursday of last week, as investors rotated out of artificial intelligence-related names that had driven much of the market's first-half gains. Markets were closed Friday.
Thursday's selling was partly attributed to a report that Anthropic is exploring a custom AI chip developed in partnership with Samsung Electronics — a development that raised concerns among some investors that large AI customers could reduce their reliance on established chip suppliers over time.
Among the hardest-hit names on Thursday: Marvell Technology dropped 9.8%, Micron fell 5.5%, and AMD lost 4.3%. By Monday, Intel, Arm, and Broadcom had each recovered more than 3%.
Nvidia, however, was largely absent from the rebound. The company's shares underperformed amid an industry research report citing delays involving its next-generation Kyber rack-scale server system. With the stock trading at less than 19 times forward earnings, according to FactSet data, some analysts argue the recent selling has overshot fundamentals.
Separately, shares of Qnity — a chemicals and materials supplier to the semiconductor manufacturing industry — jumped more than 6% Monday. Deutsche Bank forecasted 15% revenue growth for the company this year, well above management's own guidance of 11%, citing tailwinds from continued demand in semiconductor fabrication. Qnity shares are up 85% in 2026 and last hit record highs in late June. The company was spun off from DuPont.
The broader market was mixed on Monday. The S&P 500 and Nasdaq Composite traded higher, building on gains from the prior week, while the Dow Jones Industrial Average slipped after briefly surpassing 53,000 for the first time.
On the electric vehicle front, Tesla reported producing 451,758 vehicles and delivering 480,126 for the most recently reported quarter — 18% above the consensus analyst estimate of 406,600 deliveries. Despite those results, the stock did not extend gains, reflecting the weight of a valuation that stood at approximately $1.48 trillion, or roughly 15 times trailing 12-month sales.
Rivian, whose market capitalization stands at $23.5 billion, recently launched the R2, a mid-market SUV targeting the segment currently led by the Tesla Model Y. The move marks a significant shift for Rivian, which previously offered only the R1S and R1T — vehicles priced above $100,000 that competed with Tesla's Model X and Cybertruck. In 2025, Tesla sold approximately 1.64 million vehicles, with 96.9% of those being Model 3 or Model Y units. Rivian sold 42,247 vehicles over the same period.
Rivian is not yet profitable and, according to consensus analyst expectations, is unlikely to achieve net profitability before 2030. The company held approximately $4.8 billion in cash as of its most recent quarterly report, while analysts estimate it will burn through roughly $9 billion before reaching cash-flow positive territory — signaling that additional equity or debt issuance remains a possibility over the medium term. Rivian shares had already rallied nearly 45% from their mid-May lows heading into Monday's session.
The Broadcom-Apple extension and the semiconductor rebound will be closely watched in the coming weeks as investors assess whether last week's sell-off represented a temporary rotation or the beginning of a more sustained reassessment of AI chip valuations.
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