AMD and Broadcom have both benefited from the AI boom, with AMD shares up 421% and Broadcom up 285% over three years. In Q2, AMD's revenue rose 50% year over year to $11.5 billion, its data center segment reached $6.7 billion (up 107%), and non-GAAP EPS hit $1.66 (up 246%), with AMD projecting a $220 billion CPU opportunity and a $1.4 trillion AI accelerator opportunity by 2030. Broadcom's fiscal Q3 2026 revenue grew 86% to $29.6 billion, with AI semiconductor revenue up 221% to $16.7 billion, and it projects $115 billion in AI revenue for fiscal 2027 and $230 billion for fiscal 2028. The author gives a slight edge to Broadcom on valuation, at 19.4x forward earnings versus 39.5x for AMD, though AMD's EPS is growing faster. Broadcom's margins could decline as lower-margin AI chip sales take a larger share of its total revenue.
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