Advanced Micro Devices (AMD) and Broadcom (AVGO) are significant players in the semiconductor industry, focused on powering artificial intelligence (AI) infrastructure. Both companies are poised to benefit from the projected $700 billion combined spending by major tech firms like Alphabet, Meta, Amazon, and Microsoft on AI infrastructure by 2026.
In the first quarter of fiscal 2026, Broadcom reported a 140% year-over-year increase in custom accelerator revenues, contributing to total Semiconductor solutions revenues of $12.52 billion, up 52% year-over-year. In contrast, AMD expects its data center AI revenues to grow at a compound annual growth rate (CAGR) of over 80% in the next 3-5 years, despite a modest revenue guidance of $9.8 billion for the first quarter of 2026, indicating a 32% year-over-year growth.
Broadcom anticipates second-quarter revenues of $22 billion, reflecting a 47% year-over-year growth, while AMD’s current stock performance reflects a 6.9% decline year-to-date. Analysts estimate Broadcom’s earnings for fiscal 2026 at $11.12 per share, up 10.6%, and AMD’s at $6.61 per share, suggesting 58.5% growth over the previous year.
