Applied Materials and Broadcom Form R&D Partnership for AI Chip Packaging
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: stocktwits
- Partnership Announcement: Applied Materials (AMAT) and Broadcom (AVGO) have announced a new R&D partnership aimed at developing advanced packaging technologies for AI chips, addressing the surging demand for AI and driving innovation in the semiconductor industry.
- Resource Utilization: Broadcom will leverage resources from Applied's global network of innovation centers, including the upcoming EPIC Center in Silicon Valley, which is considered the largest-ever U.S. investment in advanced semiconductor equipment R&D.
- Market Reaction: Following the partnership announcement, shares of Applied Materials rose over 2% in early trading, while Broadcom's shares saw a slight increase, indicating a positive market sentiment towards the collaboration.
- Industry Outlook: With strong ongoing demand for AI-driven chips, particularly in advanced logic, DRAM, and high-bandwidth memory, the partnership is viewed as crucial for enabling sustainable progress in the industry, expected to enhance chip performance and energy efficiency.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 449.680
Low
190.00
Averages
288.05
High
425.00
Current: 449.680
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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