Broadcom Inc ( AVGO ) shares are trading higher Wednesday following a report indicating the company is working with Apple Inc ( AAPL ) on AI chip development.

What To Know: According to a report from The Information, Apple ( AAPL ) is working with Broadcom ( AVGO ) to develop a server chip designed for AI tasks.

Three people with direct knowledge of the matter said the AI server chip aims to help the company keep up with high computing demands of its new AI features. Apple ( AAPL ) is reportedly working with Broadcom ( AVGO ) on development of the chip's networking technology.

Broadcom ( AVGO ) shares jumped approximately 5% on the news. Apple ( AAPL ) shares were also higher at last check.

Apple ( AAPL ) unveiled AI features, or Apple Intelligence, for its latest products at its Worldwide Developers Conference earlier this year. In Apple’s most recent earnings release, the company said new Apple Intelligence capabilities supercharged its product lineup heading into the holiday season.

Broadcom ( AVGO ) is due to report fourth-quarter financial results after the market close on Thursday. Analysts expect the company to report earnings of $1.38 per share and revenue of $14.097 billion, according to estimates from Benzinga Pro.

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AVGO Price Action: Broadcom ( AVGO ) shares were up 5.08% at $180.53 at the time of publication, according to Benzinga Pro.