Broadcom and AMD Show Strong Earnings Growth
Broadcom (NASDAQ: AVGO) reported a 48% year-over-year revenue increase for its fiscal Q2 2026, while AMD (NASDAQ: AMD) experienced a 50% growth in the same timeframe for the quarter ending June 27. Broadcom’s AI semiconductor revenue has more than doubled year-over-year and is projected to triple by the next quarter, with a forecasted 84% growth. In contrast, AMD expects a 41% revenue growth following a strong performance in its data center revenue, which accounts for 58% of its total revenue.
Despite AMD’s slight edge in revenue growth, Broadcom is seen as a more stable investment, holding a P/E ratio of 70 compared to AMD’s 120. Broadcom also benefits from a higher net profit margin of 42% versus AMD’s 19.9%, indicating potentially lower investment risk.
As AI infrastructure evolves, demand for CPUs, a market niche AMD is positioned to capture, is expected to increase significantly. Current ratios of CPUs to GPUs in AI infrastructures may shift from one CPU for every eight GPUs to one CPU per GPU, enhancing AMD’s growth prospects in the sector, while Broadcom, which does not produce CPUs, may miss out on this trend.
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