AMD vs. Broadcom: Who Will Dominate the Next Decade?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy AVGO?
Source: Fool
- AMD's Strong Performance: In 2025, AMD achieved record full-year revenue of $34.6 billion with a gross margin of 50% and earnings per share of $2.65, and it anticipates a 32% growth in Q1 2026 with a non-GAAP gross margin of 55%, indicating robust market demand and sustained growth potential.
- Broadcom's Robust Outlook: Similarly, Broadcom posted record revenues in 2025 and is expected to continue this momentum into Q1 2026, boasting an AI-specific backlog of approximately $73 billion, highlighting its strong market position and future growth prospects in the AI sector.
- Valuation Challenges: Both AMD and Broadcom have high stock prices, with AMD's P/E ratio at 79 and Broadcom's at 68, reflecting market expectations for future growth but also potential valuation pressures, necessitating cautious risk assessment by investors.
- Competitive Landscape: Broadcom's diversified portfolio across custom chips, networking, and enterprise software provides multiple growth engines, positioning it to dominate the next decade, while AMD is also actively entering the AI market, indicating an intensifying competition.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 317.530
Low
370.00
Averages
457.75
High
525.00
Current: 317.530
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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