Broadcom vs. AMD: Which AI Chip Stock Is the Better Buy?

Broadcom vs. AMD: Which AI Chip Stock Is the Better Buy?

By Marc Guberti, The Motley Fool
Publication Date: 2026-08-16 10:55:00

The AI chip trade has been one of the most profitable investment opportunities over the past decade, and the leaders continue to gain market share. Broadcom (NASDAQ: AVGO) and AMD (NASDAQ: AMD) have both outpaced the S&P 500 (SNPINDEX: ^GSPC) year to date.

These companies specialize in different products. While Broadcom makes most of its money from ASICs, which are custom-made chips for tech giants, AMD specializes in GPUs and CPUs.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »

Here’s what investors should know when comparing both stocks.

Image source: Getty Images.

Both companies have been delivering exceptional results

It’s not easy to choose between growth stocks like Broadcom and AMD,…