Better Artificial Intelligence (AI) Stock: Broadcom vs. AMD | The Motley Fool

Broadcom (AVGO 1.79%) and Advanced Micro Devices (AMD 2.50%) have been trailing Nvidia in the artificial intelligence (AI) chip market in recent years. Still, both companies are now experiencing a nice uptick in their growth thanks to their growing influence in this market.

As it turns out, both chip designers have outperformed Nvidia stock in the past year. While Broadcom has jumped 69% over this period, AMD has logged stronger gains of 92%. But if you had to choose either AMD or Broadcom for your portfolio right now, which one would be the better bet?

Let’s find out.

The case for Broadcom

Broadcom dominates the custom AI processor market with an estimated share of 60% to 80%. These custom processors, known as application-specific integrated circuits (ASICs), are in terrific demand from hyperscalers and AI companies looking to reduce reliance on Nvidia, achieve significant cost reductions, and speed up performance while keeping power consumption in…