Investing.com -- Broadcom Inc. (NASDAQ: AVGO) shares climbed 4% on Monday after the semiconductor company announced a significant extension of its chip supply agreement with Apple Inc. (NASDAQ: AAPL), securing a critical revenue stream for the remainder of the decade.

The new agreement ensures that Broadcom will remain a cornerstone of Apple’s hardware supply chain for years to come. According to the company’s recent SEC filing, the two tech giants are officially deepening their ties:

"Broadcom Inc. (“Broadcom”) and Apple Inc. (“Apple”) have agreed to expand their long-standing technology collaboration through 2031 by entering into new multi-year long-term agreements for Broadcom to develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products."

This extension covers a broad range of custom chip designs that will be integrated into various Apple devices, securing a nearly decade-long relationship between the two companies.

While the Apple partnership remains a massive pillar for Broadcom, the chipmaker is also aggressively expanding its footprint in the artificial intelligence sector. Broadcom continues to develop AI-specific chips for other major technology firms, notably partnering with industry leaders like Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META).

For investors, this extended supply deal provides Broadcom with highly coveted, long-term revenue visibility from one of the world’s most valuable companies. As Apple continues to rely heavily on custom silicon to power and differentiate its product lineup, this agreement cements Broadcom’s position as an indispensable partner in the tech giant’s future.