Broadcom Vs. AMD: Which AI Chipmaker Is The Better Stock?

"AMD specializes in GPU chips, while Broadcom specializes in ASIC chips. The distinction between these types of AI chips is that GPUs can handle a wide range of tasks, while ASICs are customized to handle very specific workloads better than a GPU chip. As a result of soaring demand, both companies performed well in their most recent quarters. Broadcom delivered 28% year-over-year revenue growth in Q4 FY25, while AMD announced 34% year-over-year revenue growth in its fourth quarter results."

"It's impossible to talk about AI chipmakers without bringing up Nvidia ( NASDAQ:NVDA), and it's pretty important for comparing Broadcom and AMD. Nvidia is the largest chipmaker and has the strongest reputation in the industry, making it hard to compete with the giant. Nvidia also outgrew Broadcom and AMD, producing 62% year-over-year revenue growth in Q3 FY26. Nvidia looks poised to gobble up market share, making it harder for other companies to compete."

Broadcom focuses on ASIC chips that are customized for specific AI workloads, while AMD focuses on GPU chips that handle a wide range of tasks. Both companies reported strong revenue growth and high net profit margins: Broadcom achieved 28% year-over-year revenue growth in Q4 FY25 and AMD posted 34% year-over-year growth in its fourth quarter. Tech giants are increasing AI spending and demand for AI chips remains high, supporting further revenue acceleration into 2026. Nvidia is the largest chipmaker with faster recent growth, but Broadcom and AMD offer lower market-cap alternatives for investors seeking exposure to AI hardware.

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