Chip Industry Performance Overview
Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO) are leading players in the semiconductor market, with both companies showing significant financial strength. In 2025, AMD reported a record revenue of $34.6 billion, a gross margin of 50%, and earnings per share of $2.65. For the first quarter of 2026, AMD projects 32% growth and a non-GAAP gross margin of 55%. In comparison, Broadcom, a $1 trillion company, also had a strong year with a substantial AI-specific backlog of around $73 billion and a trailing P/E ratio of 68.
The competitive landscape suggests Broadcom may have a slight edge due to its diversified portfolio across custom chips, networking, and enterprise software. While AMD’s P/E ratio stands at a high 79, both companies are considered valuable investments amidst the ongoing tech sector volatility.
