By Anthony Di Pizio
Publication Date: 2026-05-15 08:59:00
The semiconductor industry is the beating heart of the artificial intelligence (AI) boom, because developing this revolutionary technology wouldn’t be possible without specialized data center chips and networking components. Demand is heavily outstripping supply for this hardware, which is benefiting suppliers like Advanced Micro Devices (AMD +1.21%) and Broadcom (AVGO +5.58%).
Since the AI boom started gathering momentum at the start of 2023, shares of AMD and Broadcom have exploded higher by 590% and 650%, respectively. But which company is the better investment?
Image source: Getty Images.
The case for AMD
AMD started making data center chips specifically for AI workloads in 2023 with the launch of its MI300X graphics processing unit (GPU). The chip attracted customers like Oracle and Microsoft, so it helped the company snatch some market share from Nvidia, the leader in this space.
AMD has since launched GPUs like the MI355X and the MI440X, which are even more powerful than…
