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Apple, Broadcom reach multi-billion dollar chip deal

Yahoo Finance's Julie Hyman and Brad Smith break down Apple's multi-billion dollar chip deal with Broadcom and what it means for the sector.

Video transcript

- But let's talk about another story that you touched on earlier. Broadcom trading higher after Apple announced a multiyear, multibillion dollar deal with the chipmaker to develop 5G radio frequency and wireless connectivity components. Quite interesting here. Interesting also because Apple doesn't always tell us and make these public announcements about who they're partnering with like this.

So Broadcom shares of about 2%. Not sure if we're seeing any movement in the Apple shares because, let's be honest, it's more of a mover for something like a Broadcom. But interesting that we're getting this news.

- Yeah. Apple shares are actually down today by about 7/10 of a percent. But I think this is significant in terms of how Apple has now looked towards another partner to structure its go-forward strategy, especially, as they've done even more of that vertical integration. There, you're taking a look at the NASDAQ 100 there. And you've got in that top left corner, Apple's move on the day here. And then AVGO, you're seeing that 2% move to the upside there within our heat map for some of those major tech companies.