Broadcom Inc. (AVGO) reported a remarkable 143% increase in AI semiconductor revenues for the fiscal second quarter of 2026, reaching $10.8 billion, with projections estimating $16 billion for the upcoming third quarter. The company’s consolidated revenues are expected to rise to $29.4 billion in Q3, an 84% year-over-year growth. In contrast, Advanced Micro Devices, Inc. (AMD) saw a 50% increase in Q2 revenues to $11.5 billion and anticipates approximately $13 billion in Q3 revenues, representing a 41% year-over-year growth.
Broadcom is maintaining a robust adjusted EBITDA margin of around 68%, marking a significant lead in profitability over AMD, which is projected to have a gross margin of 56% for Q3. Moreover, while AMD’s market challenges persist, Broadcom’s diversified AI exposure provides it with a favorable risk-reward profile, trading at a forward price/earnings ratio of 31.66 compared to AMD’s 63.64.
Both companies currently hold a Zacks Rank of #3 (Hold), yet Broadcom’s lower valuation and growth outlook position it as a more attractive investment relative to AMD’s higher valuation and competitive hurdles.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
