AMD vs. Broadcom: Which One Will Dominate the Next Decade?

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Abstract generation in progress

Fortunes have already been made in the chip and semiconductor industries, and investors in Advanced Micro Devices (AMD +1.54%) and Broadcom (AVGO +0.19%) are very much part of the boom. Both companies are on a strong upward trajectory, but have experienced significant pullbacks as the broader tech sector grappled with questions surrounding AI and its inevitable disruptions. The future looks bright for AMD and Broadcom, but which one will dominate the next decade?

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NASDAQ: AMD

Advanced Micro Devices

Today’s Change

(1.54%) $3.09

Current Price

$203.21

Key Data Points

Market Cap

$332B

Day’s Range

$198.36 - $204.10

52wk Range

$76.48 - $267.08

Volume

909K

Avg Vol

37M

Gross Margin

45.99%

The case for AMD

AMD had quite the year. In 2025, the company posted record full-year revenue of $34.6 billion, gross margin of 50%, and earnings per share of $2.65. The company also anticipates the momentum will continue through this current year. For the first quarter of 2026, the company believes it could reasonably achieve 32% growth and a non-GAAP gross margin of 55%.

Image source: Getty Images.

AMD boasts some serious customers and partnerships, including with OpenAI and Oracle. The company is also planning to launch its ‘Helios’ server-scale AI system later this year.

AMD’s stock remains expensive, even after the recent tech stock slide. The company’s trailing P/E ratio is still a very high 79.

The case for Broadcom

Broadcom is one of just a handful of trillion-dollar companies in the world. Much like AMD, Broadcom had a banner year in 2025. The company posted record revenues, and the outlook for the first quarter of 2026 suggests it will continue to build on that momentum.

The company has an AI-specific backlog of approximately $73 billion. Broadcom’s stock is also expensive. Its trailing P/E is slightly lower than AMD’s, but still high at 68.

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NASDAQ: AVGO

Broadcom

Today’s Change

(0.19%) $0.62

Current Price

$334.13

Key Data Points

Market Cap

$1.6T

Day’s Range

$329.79 - $338.39

52wk Range

$138.10 - $414.61

Volume

627K

Avg Vol

31M

Gross Margin

64.71%

Dividend Yield

0.72%

The ultimate winner

The outlook for AMD is promising, but Broadcom has the slight edge here. The company has a diversified portfolio across custom chips, networking, and enterprise software, providing multiple growth engines. Broadcom is poised to dominate the next decade.

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