Broadcom joins Applied Materials’ EPIC platform to advance AI chip packaging
The partnership underscores the industry’s shift toward advanced packaging for custom accelerators, coinciding with strong financial results and robust analyst sentiment for the US-listed firm.
Broadcom has become the latest partner to join Applied Materials’ EPIC platform, a collaborative initiative designed to develop innovations in AI chip packaging. The announcement highlights the growing strategic importance of efficient interconnects and advanced packaging technologies for custom AI accelerators and next-generation compute systems. By leveraging Applied Materials’ global research and development network and packaging innovation centres, Broadcom aims to address the increasing complexity of multichip architectures in artificial intelligence infrastructure.
The collaboration arrives against a backdrop of significant financial momentum for the California-headquartered semiconductor firm. In its fiscal first quarter of 2026, Broadcom reported a 29 per cent year-on-year increase in revenue, reaching $19.31 billion. The company’s AI segment proved to be the primary growth driver, with revenue surging 106 per cent year-on-year to $8.4 billion. Chief Executive Hock Tan noted that demand for AI accelerators and networking products remained exceptionally strong among hyperscale cloud providers.
Looking ahead, Broadcom has issued robust guidance for the second quarter, projecting revenue of approximately $22 billion. This represents a 47 per cent year-on-year increase and reflects the company’s operational leverage. The firm also expects an adjusted EBITDA margin of 68 per cent for the period, reinforcing its position as a high-margin player in the semiconductor sector. The company’s profitability metrics, including a profit margin of 36.2 per cent, have supported its market capitalisation of nearly $1.96 trillion.
Wall Street analysts maintain a ‘Strong Buy’ consensus for Broadcom stock, citing the company’s ability to benefit from broader AI infrastructure investments alongside peers such as Nvidia. The average price target for the shares stands at $479.40, with some analysts setting a high of $630. Broadcom’s shares have risen approximately 86 per cent over the past 12 months, trading near $414.74, significantly outperforming the S&P 500 Index.
The partnership with Applied Materials signals a broader evolution in the AI hardware landscape. Industry focus is shifting beyond raw computing power to encompass system-level efficiency, including interconnects, photonics, and power delivery. As AI systems increasingly rely on complex packaging solutions to connect multiple chips, collaborations like the one under the EPIC platform are becoming critical for maintaining competitive advantages in next-generation compute systems.
