The Information reports tech giant Apple (NASDAQ:AAPL) is creating its first server processor, tailored for artificial intelligence applications.
Working with Broadcom (NASDAQ:AVGO), the tech behemoth is integrating sophisticated networking elements necessary for artificial intelligence operation. The development of the chip highlights Apple’s growing interest in artificialintelligence possibilities all around its system.
Premarket trading saw Broadcom shares rise by single digits following the news. Last year, Apple secured a multi-billion-dollar contract with Broadcom to provide 5G components, strengthening their relationship. As businesses fight for leadership in the quickly changing industry, the development signals ongoing investment in artificial intelligence infrastructure. It’s important to note that AAPL stock is up 29% YTD and almost20% over the past six months. The resurgence in the stock following a lean period is linked to its AI-powered developments, which have propelled it among the industry bellwethers.
This article first appeared on GuruFocus.
