Broadcom and AMD Experience AI Growth Surge
In recent years, both Broadcom (NASDAQ: AVGO) and Advanced Micro Devices (NASDAQ: AMD) have shown substantial growth in the AI chip market, with Broadcom’s stock rising 69% and AMD’s by 92% over the past year. Broadcom dominates the custom AI processor market with a 60% to 80% share and aims for $100 billion in AI revenue by 2027, up from $20 billion in the previous fiscal year. AMD is also on an upward trajectory, reporting a 32% increase in data center revenue, totaling $16.6 billion for 2025.
For the first quarter of fiscal 2026, Broadcom reported a 106% year-over-year increase in AI revenue. Key clients like Alphabet, Meta, and OpenAI are expected to accelerate their deployment of Broadcom’s application-specific integrated circuits (ASICs). Meanwhile, AMD plans to strengthen its position in the data center GPU market and has secured multi-gigawatt deals with Meta and OpenAI for its Instinct processors.
